Monday, April 25, 2016

Street consensus and Buy. Hold and Sell:

Torstar (TS.B) seems to be a value trap at the moment. They are sitting on a lot of cash – companies sitting on cash are usually bad investments. They are tying to go digital, the publisher is leaving, the shares are trading at multi-year lows and out of the 5 analysts that cover the company – all 5 have a “Hold” rating on the stock.  Again - we all know that a “hold” rating means they just don’t know.

One BNN contributor recently said – “Torstar is stupid cheap,”

So there are a lot of negatives – we have a shrinking business with no analyst support and a fundament guy thinks the stock is “cheap”. Cheap to me means cheap because nobody wants to own the shares. I bought some Torstar stock last week because of all the fundamental negatives – and the one technical positive – a bounce of the recent lows on a big (for Torstsr) volume increase. Thanks to for the CandleGlance plot of Torstar.

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