Corus Entertainment (B)CJR.B.TOCOMMENTJan 10, 2018Stock price when the opinion was issued
As of Jun 04, 2026. Market Open.
Since last summer there has been a recession in advertising for television and this has been a problem for Chorus. There are longer term headwinds since subscribers are moving more to streaming services. Chorus has STACK TV but it is an uphill battle against some of the big companies. It sold its animation studio to help reduce debt load but debt is still pretty high. The stock is too risky.
Owning this is similar to blindfolding yourself, and trying to walk through your house. You can't really see where you are going, but you roughly have an idea of what is going on. On this company, we know the business, we know the assets and we know what they are trying to do, but the challenge is that the industry is going through so much change and it is very difficult to value the assets. There are 2 distinctive unknowns with this. 1.) Valuing the assets and 2) betting on their ability to turn around the business they are focused on. Technically they should cut the dividend, but have no choice as that is what is keeping investors there. Dividend yield of 10.3%.