Buy This Dividend-paying Survivor

Article Excerpt

Torstar and other top North American newspaper stocks have been poor performers in the past few years. Most are losing classified ad revenue to Internet auction sites like eBay, or free online ad sites like Craigslist. Circulation revenues are also falling, as readers, particularly young people, get more information from TV and the Internet. That makes newspapers a less appealing vehicle for advertisers. We feel some newspaper publishers will survive the current transition period and thrive all the more when good times return. That’s especially true of well-established companies like Torstar that are embracing the Internet and spreading out into related areas. Torstar’s Harlequin subsidiary also gives the stock hidden value. Risk is limited at current levels and the current 3.5% yield eases the pain of waiting for the turnaround. TORSTAR CORP. $21 (Toronto symbol TS.B (old symbol TS.NV.B); Conservative Growth Portfolio, Consumer sector; SI Rating: Above average) is one of Canada’s top media companies. It’s best known as the publisher of…

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