This shift to packaging was a smart move

Article Excerpt

To protect investor value, in the past few years Transcontinental has shifted its focus to packaging and away from its cyclical commercial printing business. That cuts your risk. In fact, the company is so confident about that move and its future it has just raised your dividend. TRANSCONTINENTAL INC. $15 is still a buy for aggressive investors. The company (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 87.0 million; Market cap: $1.3 billion; Price-to-sales ratio: 0.5; Dividend yield: 6.0%; TSINetwork Rating: Average; www.tctranscontinental.com) is Canada’s leading commercial printer. It also makes plastic packaging for consumer and industrial products. That cuts your risk as companies shift their advertising budgets to online platforms and spend less on printed advertising flyers. Transcontinental is also expanding its food packaging operations. Big acquisition deepens new focus As part of that strategy, Transcontinental paid $1.7 billion for Chicago-based Coveris Americas in May 2018. Coveris makes plastic packaging at plants in the U.S., Canada, the U.K., Ecuador, Guatemala, Mexico, New Zealand and…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.