Topic: How To Invest

The Successful Investor Hotline – Friday, December 13, 2019

Article Excerpt

TRANSCONTINENTAL INC., $14.90, Toronto symbol TCL.A, is still a buy for aggressive investors. In May 2018, Transcontinental paid $1.7 billion for Chicago-based Coveris Americas. That firm makes plastic packaging for consumer and industrial products at plants in the U.S., Canada, the U.K., Ecuador, Guatemala, Mexico, New Zealand and China. With the Coveris purchase, the company now gets 53% of its revenue from packaging. That offsets the cyclical nature of its commercial printing and media operations, and cuts investor risk. That purchase is looking more important now that the City of Montreal is considering banning the delivery of advertising flyers unless residents agree to accept those items. That would hurt Transcontinental’s Publisac business, which prints and distributes flyers and community newspapers in plastic bags to 3.3 million Quebec households. Uncertainty over Publisac’s future is mainly why the stock has dropped 18% in the past three months. Meantime, the company’s overall revenue in the fiscal 2019 fourth quarter, ended October 27, 2019, fell 4.6%, to $785.4…