We’ve Changed Our Opinion on Thomson

Article Excerpt

THE THOMSON CORP. $47 (Toronto symbol TOC; Conservative Growth Portfolio, Consumer sector; SI Rating: Above average) has mainly stagnated as an investment in this decade, as it steadily sold off its print-based businesses, to focus on electronic information services. As part of this strategy, it now wants to sell its educational operations. We have a high opinion of Thomson’s business strategy. For a number of years we advised against new buying, however, because we felt the payoff would be slow to come. Now it seems a little closer. The stock still seems somewhat expensive at 21.8 times the $1.85 U.S. that it is likely to earn in 2007. But it is entrenched as the leader in a number of highly attractive electronic publishing businesses. We now view Thomson as a buy for patient investors. investors…

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