Investment Q&A

Q: Why would the Torstar board agree to a hard lockup on the Nordstar offer when they know there is at least one other bidder interested in buying the company? Also, why would Fairfax indicate they are voting in favour of this deal. Shouldn't a company like Fairfax be pushing the board to entertain other offers. Does FFX have a fiduciary responsibility to its shareholders to ensure they maximize the value of their Torstar holdings. Feels like some inside dealing going on between Nordstar, Torstar board and FFX management??
Also, they cut the dividend in November which knocked the share price down 40%, then in January they put the company in play. Why cut the dividend before putting the company up for sale? Buyers pay a premium over the stock market price to get a company. So if they kept the dividend it is likely any buyer would have to pay a premium on what would have been a much higher dividend supported price. Your comments please and thanks.

Q: Good morning 5i team,
What is you opinion of the sale of Torstar for .63 /share. It appears to be below cash on hand and below book value of the company. Only Vertical Scope has BV of $115.3 million . Why would Fairfax support the deal when they paid a much higher price for their 40% and be willing to take a massive loss ?? Something does not feel right about this transaction.
Thanks,
George
George

Q: Good day,
Torstar has about 75 million in cash and no debt after a recent sale of a building in Hamilton. It has huge losses to carry forward, it owns 50% of Vertical scope which it paid about 200 million a few years and other small assets. I believe it is also getting some help from the government and the family trust must not be happy with no monthly dividends. At 26 million market cap it appears like its grossly undervalued and a possible takeover target by Fairfax Financial which owns about 40 % of the Class B be shares. What is your view of this scenario and the stock today?
Thanks,
George

Q: Now that the dividend has been finally removed and the Trust is no longer getting the income. Is it a possible takeover target and who would want to buy it??
It appears like there must me some value to this company.
Thanks,
George

Q: What do you think of Torstar after the last earnings report, the stock had a nice move up to $1.00 range. Does their 56% in VerticalScope provide some hidden value that is not reflected in the stock price since they paid $200 million for it 4 yrs ago?
Thanks,
George

Q: What is your opinion on Ts.B last earnings report? The stock dipped below $1.00, will the company survive and what are the consequences if it stays below $1.00?
Thanks,
George

Q: Every so often I take a look at Torstar. Does today's earning report do enough to actually make it investable? Thank-you.

Q: What is the problem with Torstar, is has gone down a lot lately?
Why does Fairfax keep buying more stock after it has lost lots of money on this investment? Is it a good time to buy. Thanks, George

Q: Suggestions for value stocks, any industry, and under 2 billion market cap? Thanks.

Q: The Star shows a Div Payout Ratio of -146%. Exactly, what does that mean?

Thanks!

Q: Hello I5, Like to have your assessment of TS.b, is the div safe, do you see any near term growth. With regards to FGD, would you explain what "re-assume debenture" means, your evaluation of this company' growth and earnings.
Many thanks, J.A.P. Burlington, Ont.

Q: Torstar has seen some gains lately and is up again today
on heavy volume(according to TD Waterhouse).
Would there be any justification for taking a 1/2 position
(2.5 percent of stock portolio)?

Q: Can you comment as to why Fairfax would purchase 3.5 million shares of Torstar. Do they know something the rest of the market doesn't.

Q: peter what do you think take a chance win a prize

Q: peter what do you of ts.b after cutting their dividend