Hamilton's E-Wave Analysis

TS.B, Torstar

ts.b 13 nov 2017

Torstar was brought to my attention by a friend who wanted to know if the low was in. It had recently hit $1.16 or $1.20 depending on who you used for the info. It seemed to me that the question at this point is a little academic after the stock has gone from about $32 to $1, give or take 97% if my calculator still works.

To answer this question generically, the answer must be a resounding YES, it is a buy. The reason is rather simple and statistically speaking companies do not go down, if they go down, in a straight line. If you take a good look at companies like Loewen or Bre-X etc. they almost always bounce from near zero to $3, 4 or 5 before they disappear all together. If you are nimble the potential is enormous. In some cases the company comes back completely, a good example of that is ABB, Asea Brown Boveri  the Swedish/Swiss engineering giant. Here is that chart;

As you can see, the stock crashed to about $1, that is for the ADR. It immediately reverses itself and goes back up to $34. Tunnels are not always straight and that is why, at first, you cannot see the light at the end of it but after just a short time things can change rapidly.

The Toronto Star is Canada’s largest newspaper. Some think it is too left leaning but if you live in the country it is often the only one that is delivered to your driveway. It is hard to believe that it is about to go the way of the DoDo bird even if, ultimately that is the destiny of all newspapers. A buy if you ask me. Oh, by the way, the dividend is 7.35 % if Bigcharts info is correct.