Opinions Alex Ruus
Corus Entertainment (B)CJR.B.TODON'T BUYJan 16, 2018
$8.47
Stock price when the opinion was issued
$0.03
As of Jun 04, 2026. Market Open.
entertainment services
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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.
entertainment services
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Stockchase Research Editor: Michael O'Reilly CJR is trading at good value at 6x earnings compared to peers at 18x and is trading just 1.2x book value. It has a good dividend, backed by a payout ratio estimated at 27% of cash flow. We would buy this with a stop loss at $4.50, looking to achieve $7.85 -- upside potential over 31%. Yield 4.06% (Analysts’ price target is $7.84)
entertainment services
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PARTIAL BUY
Allan Tong’s Discover Picks The stock is climbing out of a long slump and offers upside of 23%, based on a price target of $7.71 by six analysts. Corus has cut costs and the Shaw family owns the company, so there is stability in the upper office. Meanwhile, shareowners can collect the 3.83% dividend yield. However, the fundamentals remained challenged with negative earnings, a -41% profit margin and -46% ROE. There’s still a ways to go with this story. There’s upside, but maybe not to $7.71. Consider this a partial buy. Read 3 Promising Stock Upgrades: SNAP, Uber, Corus for our full analysis.
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entertainment services
Dividend yield of 13.5% since the price plunge. When you see that sort of dividend yield, it usually telegraphs something is coming. There is a transition in the world of entertainment. Unfortunately, it's bad for companies like this. They have a big component in advertising, and the value of that advertising is going down. The concern is that this in secular decline now. Profits are under pressure, and until we see the dividend cut that the stock is telegraphing, it is probably in no man's land and will probably go sideways. Probably not that much downside in the near term, and longer-term it depends on how the fundamentals develop. A lot of people don't want to be there because it is gone from a growth situation to a potential shrinking situation. He would be in no rush to get involved.