Price Support?The stock will not get any serious price support until management does something positive to build confidence in their management team. I do not think we will hear anything until the final quarter results are released on Jan 31, 2019.
The shorts and those throwing in the towel will continue to pound the stock, because they can - as the bids are all on the side lines and will stay on the sidelines. Can you imagine where the stock would be if an open sell order is placed at the market for 1mm shares? Heaven help us!
Torstars' market cap is now 64mm.
Q3/18 cash and cash equivents were 48mm, so the company should end of the year at about 60mm in cash and cash equiv.
- Worth noting the Q3/17 cash and cash equiv was 51mm and Q4/17 was 71mm. They forecased investments of about 10-15mm in 2018 which is why I feel 60mm is where they will end up the year.
I feel Torstar management has 4 options:
- go private - they may get book value of about $3.00. A good deal for Fairfax at this price.
- merge with Post Media - the stock should get a positive bump on cost reduction
- A board seat for Fairfax - the stock should get a positive bump on the synergy
- Do nothing - the stock will continue to languish.
Greybeard