John ZechnerQuebecor World Inc.IQW.TOBUYMay 05, 2005
Looks interesting. Commentary on the industry is very positive. Have been restructuring the last couple of years. Starting to improve their margins. A good cash generating business.
Still in reorganization. Usually in these cases, common shareholders get diluted down to about zero. Paper business is seen as a 19th century business, not a 21st.
Under bankruptcy protection but keeps signing contracts. Think of this as a lottery ticket. A good example of a company that got too greedy. They could have sold a lot of assets much, much higher before going into bankruptcy.
This is on his Stock Watch list. As a contrarian, he likes to avoid a falling knife and this one is still falling precipitously. Could possibly go into receivership.
Had a big breakdown in August followed by another big breakdown in November. At this point, if you are brave you could look for a recovery rally but, remember the saying “don't catch a falling knife”.
Hasn’t been his favourite company. Has been cheap, but in terms of the earnings profile, it hasn’t been that strong. Advertising world is still under pressure.
Has been a perennial dog. The problem here is the printing business. This is a commodity business and you are competing on price only. Attractive dividend.
A contrarian pick. Deep cyclical company, hasn't gone out of business and has started to improve a little. Initially improvements have come through cost cutting, but expects it to eventually come though operating leverage.