RE:TD Analyst ReportHi 20,
We should all take some comfort from this analyst report. The observation that shareholders may actually be on a better footing without the dividend is spot on.
When the Voting Trust allowed the provision that allowed the unwashed masses to vote if they didn't pay $.075 per annum they probably thought that was a ridiculous throwaway clause to appease some investors and would never happen. They were awash in cash and printing money every day. Who could have imagined that between structural and cyclical forces coupled with a huge portion of gross incompetency that day is now upon them?
There has to be genuine panic at Senility Hall as Christmas approaches and no dividend cash to light the fireplace at the Voting Trust annual get together. The analysts have assigned no value to VertigoScope for which they paid $180 million only 4 years ago - $2.25/share up in smoke. They also ascribe no value to the core media assets - meaning they believe the Toronto Star is now virtually worthless.
I don't believe VS or the core media assets are worthless, but it will be a sobering message for the Voting Trust. They know they will be thrown out the minute the dividend provision kicks in and their legacy of mismanagement will be fully exposed. Good news for B shareholders.
MW