Q4 2020 - Judgement DayHi All,
I know with a world of opportunity in which individuals or companies can invest their hard-earned money why would you choose to invest in TS.B? The Voting Trust has consistently proven over decades they are incapable of making a single good decision. They stumble from one bad idea to another learning nothing and destroying not only their own wealth but that of every shareholder.
The Voting Trust and the toothless directors compound their stupidity by electing a chair who is completely devoid of any business sense and is consumed by swanning about the building meddling and creating distrust amongst everyone he touches. It doesn't inspire anyone who truly understands this environment to invest anything more than is required either keep your board seat or meet your share ownership requirement as a senior executive. Hence the lack of buying by insiders.
What gives me some measure of confidence (albeit with lots of trepidations) is this is going to end sooner than most investors think it will. In Q4 of this year, the Voting Trust is going to have a very difficult to make. If they don't resume the dividend at a minimum of $.01875/quarter and make up for the missed payments they will effectively give up control of Torstar. Before the 8 quarters elapse the company will have to pay a dividend of up to $.15 otherwise all the B shares would have equal voting rights. That turn of events would not end well for the Voting Trust so they will do everything they can to make sure the barbarians do not breach the gates.
Assuming they can find the money, it would be insane not to buy the shares at $.37. Hard to find a 41% yield with a company that is debt-free and with assets that would more than cover the other $.22 of investment.
If they decline to pay the dividend the company will be sold or privatized for considerably more than $.37/share. Nothing is guaranteed when destiny is partly in the hands of fools, but while this may end badly for the Voting Trust it will end much better for B shareholders who patiently wait for the beginning of the end of the insanity.
MW