Topic: How To Invest

TORSTAR $5.67 – Toronto symbol TS.B

TORSTAR $5.67 (Toronto symbol TS.B; Shares outstanding: 79.9 million; Market cap: $402.8 million; TSINetwork Rating: (NEW) Average; Dividend yield: 9.3%; www.torstar.com) continues to cut costs as more people get their news from the Internet.

This secular trend is working against newspapers and print advertising. As a result, we’ve cut Torstar’s TSINetwork Rating from “Above Average” to “Average.” However, we feel its lower costs put it in a good position to rebound as the economy grows. The company also owns oneof- a-kind trophy assets like The Toronto Star, and it could unlock some of its hidden value by spinning off its Harlequin book business. As well, the dividend seems safe for now.

Torstar is a buy.

Comments

Tell Us What YOU Think

You must be logged in to post a comment.

Please be respectful with your comments and help us keep this an area that everyone can enjoy. If you believe a comment is abusive or otherwise violates our Terms of Use, please click here to report it to the administrator.