RE:RE:Market capHi guys,
Media is right, market cap is about 71 million. The valuation at this level is beyond ridiculous. You should not forget that the cash position is understated, because about 30 million CAD of digital tax credits (booked in Q4 of 2017 and Q2 of 2018) are in the receivables position. I expect that amount to be converted to cash within the next 12 months (an audit by agencies takes some time...). A better way to look at liquidity is the working capital position which stands at 88 million. So Torstar trades at about 80% of its working capital. It says a lot about the importance of shareholder value within the management and Board of the company that they don't buy back stock at this level! It is not understandable.
Furthermore, yesterday brought some surprise with a federal aid package (e.g. refundable tax credits) for the newspaper industry worth 600 million over 5 years. I expect Torstar to get a substantial amount of that over the next years based on its market share of the news industry within Canada (I estimate the market share to be somewhere around 15%). I hope they use the money better than at the StarTouch investment....or should I say Verticalscope....
All in all the stock price shows clearly that the market sees the management as a major financial debt - which is discounted.
Keep the faith.
Best regards,
Don