Canadian Dollars Blog

Is Torstar even cheaper now with the sale of Harelquin ?  Saj Karsan over at Barel Karsan certainly thinks so. There are some remaining concerns we have even with the recently proposed sale: Torstar debt levels are really high Print/Newspaper revenues are in decline  What will management do with the newly acquired cash?  They hinted at paying off the debt but what if they don't use the money wisely?  Hopefully they don't invest more in print! That said, Harlequin will sell for 455 million, Torstar debt is 178 million, some quick math will reveal that 277 million in net cash. Here's some quick numbers: At today's stock price of 7.53, the market cap is approximatey 600 million. Pre-Harlequin announcement, the stock price was around 6.50 which valued the market cap at 517 million. The sale of Harlequin (pending approval) will add 277 million in net cash, yet the market cap of TS has only risen by 85 million. Does the market believe that Tors...

Here's what we're reading over at Canadian Dollars: Albert Eintein's Timeless Advice for Investors :  “If I had an hour to solve a problem and my life depended on it, I would use the first 55 minutes determining the proper question to ask, for once I knew the proper question, I could solve the problem in less than five minutes.” - Albert Einstein Safal Niveshak offers these 5 Things to Avoid in the Current Stock Market .  Extremely humbling and a friendly reminder in a market that contains high valuations. We still believe that Microsoft (MSFT) offers a great margin of safety and are very pleased with their push into the Cloud.  Under the new leadership of the new CEO, we believe that a lot of the ground work is in place to revitalize the company. We highly recommend reading Modern Graham's Microsoft Quarterly Valuation .