Undervalued Stocks – Torstar Corp is a Buy

Article Excerpt

One of the best ways to find bargain stocks is to look for undervalued stocks that have “hidden assets”. These are assets that attract far less investor interest that they deserve. That gives the buyers of these undervalued stocks a bargain. It may also attract takeover bids. If these hidden assets were sold, spun off, or utilized more efficiently, they could greatly increase the value of the undervalued stocks that hold them. One great example of such undervalued stocks is Torstar Corp. TORSTAR CORP. $11 (Toronto symbol TS.B; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 78.9 million; Market cap: $867.9 million; SI Rating: Above average) publishes The Toronto Star, Canada’s largest daily newspaper. It also publishes other dailies and community newspapers in Southern Ontario. Newspapers account for 70% of Torstar’s total revenue. The remaining 30% comes from wholly owned subsidiary Harlequin Enterprises Ltd., the world’s largest publisher of romance novels (putting Torstar Corp. in the category of undervalued stocks). Torstar’s revenue…