Earnings release is due in two days and the short sellers will gang up on the stock as usual to test your patience and force those who are still holding to surrender to their siege. They want you to capitulate.
I tried to post the comment below on Yahoo finance but it was rejected. I'll let you decide why Yahoo finance finds it convenient to ban some of my posts.
Corus is more than cable TV as the short sellers claim, Corus owns and or manages multiple streaming platforms like StackTV, PlutoTV, Global… They also own the best animation software in the industry (Toon Boom Animation Inc’s award-winning software is the global standard for 2D animation and storyboarding). They own many production studios for their own content and for collaborations with other big names. They have international distribution deals with more than 180 countries. They sell content to Netflix, Paramount…They have marketing agencies (SoDA: Social digital agency offering strategy, content production, integrations, analytics, media buying, performance marketing, influencers….) Short sellers have been targeting the company since it acquired Shaw Media for 2.6 billion dollars in 2016 thinking the company would not be able to pay its debt.
Since 2018 Corus paid over 1.1 BILLION dollars in dividends and debt repayments.. Corus acquired Shaw Media for $2.65 billion back in 2016. The debt is now down to $1.3 billion and with the recent share buybacks there are less shares floating around. When the doom and gloom cycle ends Corus will have three levers in its favour: less debt/less interest payments, less shares available as they continue their buybacks which will translate into more cash flow especially when the general sentiment improves. Within less than 5 years the company will be almost debt free and potentially with 50% less shares floating around. Just Imagine the possibilities and I am not even talking about their partnership with Pluto TV and the expansion of their content offerings and international distribution and merchandising. Corus is not about just radio and TV, they own the best software to develop kids content, multiple production and marketing companies as well as studios.
Free cash flow generated by Corus since 2011 (amounts are in millions and reflect the fiscal year):
2011: 134.861
2012: 155.147
2013: 154.711
2014: 175.276
2015: 201.213
2016: 188.165
2017: 292.660
2018:349.007
2019: 309.970
2020: 296.247
2021:251.947
2022: 239.600
The annual revenue (in millions) generated by Corus since 2010:
2010: 767.53
2011: 825.21
2012: 842.28
2013: 751.54
2014: 833.02
2015: 815.32
2016: 1171.3
2017: 1679.01
2018: 1647.44
2019: 1687.5
2020: 1511.24
2021: 1543.48
2022: 1598.586
So in 2022 revenues increased over fiscal 2021 not what the short sellers are peddling.
Short sellers prey on the emotionally weak and uninformed and I hope that some numbers will help put the facts at the forefront of the discussions instead of endless fear mongering from the short sellers. Now that you know the facts make an informed and rational decision not an emotional one.
- What happens when strong hands meet weak hands :
“Imagine” a market where there is one strong hand representing smart money (a bank, hedge fund, market maker, big investor…) and 2000 weak hands representing dumb money (retail investors, grannies in retirement, kids new to investment…). The strong hand knows the game of shorting stocks and has been playing it for decades fleecing the weak hands while laughing all the way to the bank so they play their chips this way:
- They dump a large order on the market by selling 5 million shares short for $6 a share
- A few months later they sell short another 3 million shares for $5 a share
- A few months later they sell short 1 million shares for $4 a share
- A few months later they sell short 500,000 shares for $3 a share
- A few months later they sell short 300,000 shares for $2 a share
- A few months later they sell short 200,000 shares for $1 a share
At the end of this special operation (bear raid) spanning between a few months to a few years the strong hand would have sold short a total of 10 million shares for $51,300,000 at an average price of $5.13 per share bought by some 2000 retail investors who are faced with two choices : - 1- Sell at the current price of $1 per share to the strong hand who started it all and allow him to cover his short position for a total profit of around $41,000,000 (after fees, interest and commissions…) or
- 2- Get smarter and stronger and keep holding until the A.H is forced to cover for $10 per share.
- Your decision.
This was a simplified example to drive the idea home. In real life not all hands are weak and the higher the percentage of weak hands and dumb brains the better for the strong and smart money. This is how the rich get richer and the poor get poorer. Without resistance you get crushed. Get up stand up don’t give up the fight.
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Canada is a Haven for Short Campaigners
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Many short sellers share dubious sources of information to try to convince you to sell. Many sources of financial information are worthless and have very weak and biased so called analysts. In fact, they act as shills to promote the narrative of whomever paid them. First of all the stock price performance is not a reflection of the company’s fundamentals and true financial performance, there are many examples of companies that are oversold, undervalued because of the combined actions of short sellers. Dividends based on cash flow vs earnings are two different things. When earnings decline because of a non cash write off due to a change in the value of the stock price it is not the same as when earnings decline because of systemic or structural issues within a company. Short sellers wanting to mislead you, fail to mention the difference and falsely claim that the dividend is not well covered to plant the seeds of fear in your head and convince you to sell or to not buy so they can cover. Real numbers don’t lie and if you check total revenues and cash flows since 2010 and the debt paid since 2016 you will see the big strides made by Corus on multiple fronts. Anyone with a genuine desire to understand what is happening to this stock price should be familiar with these definitions: Bear raid, short attack, FUD (Fear, Uncertainty and Doubt), Short and distort, P00P and SC00P, wash trading, Jitney trading, stop loss hunting, spoofing, psychological warfare, marking the close, painting the tape, market capitulation…