Updating Shawcor Ltd., Torstar Corp., and Transcontinental Inc.

Article Excerpt

SHAWCOR LTD. $18 (www.shawcor.com) is a leading producer of sealants and coatings to keep oil and gas pipelines from rusting. It also makes electrical wire and other industrial products. The stock is down 30% in the past six months, which reflects investors fear that lower crude oil prices could hurt the construction of new pipelines and impact ShawCor’s revenue. However, the company’s strong balance sheet will help it weather the current slump. As of September 30, 2018, it held cash of $190.3 million, and its long-term debt of $254.1 million is a manageable 20% of its $1.3 billion market cap. Buy. TORSTAR CORP. $0.76 (www.torstar.com) publishes The Toronto Star, along with StarMetro commuter dailies in Toronto and four other major markets. It also owns 56% of VerticalScope. That firm operates over 600 online forums and a variety of websites. Torstar should benefit from new federal tax credits that will help media outlets offset some of their labour costs. The plan will also provide tax credits to subscribers of digital news…

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