RE:RE:Too Much Time on my Hands...Hi All,
Comparing the share value of Postmedia to Torstar isn't probably a good indicator of how the public markets value both companies. I decided to take a look at the trading volumes of PNC over the past 12 months and see what conclusion you might draw. Herein is what I found:
- In the last year, PNC traded 8,673,592 shares, which on the surface looks impressive.
- On October 4, 2018, 7,218,392 shares traded. These were purchased by Omega Advisors that is run by Leon Cooperman, who has a large interest in America Media Inc.- see National Enquirer and David Pecker (see Donald Trump and Stormy Daniels).
- On November 30, 2017, 1,126,110 shares traded. The purchaser is a bit murky, but i believe Anthony Melchiorre bought a significant amount of these shares. He is of Chatham Asset Management and holds and owns more than 10% of the shares of Postmedia. This hedge fund is also connected to American Media Inc. and David Pecker.
- If you subtract these two days, 329,100 shares traded over 246 trading days - an average of 1,338/day. These are many days and sometimes weeks when no shares trade hands. This thin trading can lead to dramatic ups and downs of the share price.
- Postmedia recapitalized a couple of years ago and 98% of shares are owned by debt holders, so there will never be much trading on the market unless the debt holders decide to bail out.
- The American hedge funds and the two owners have a plan are ruthless when it comes to their investments. Personally, I would never invest in Postmedia because they have a history of screwing shareholders that don't have leverage. Something is happening at Postmedia and it may have some parallels to events at Torstar when it all finally plays out.