Ross Healy Transcontinental Inc TCL.B-T TOP PICK May 08, 2015

Spilt milk around $30. $20 level is important. So $13-15 really brings some interest in. Don't be in a rush to pick this up. Not a huge fan of averaging down. Stock could languish for a while. Going to have a hard time getting through $20. Better places to deploy capital. Don't let hope be your driving force instead of common sense. We all become long-term investors when we make mistakes.

It's lower than the beginning of the year. Seasonally it is not there. There are no signs of it stopping dropping.

This stock is down 50% the last year. It is going from cheap to cheaper. It is hard to understand why the stock is down so much. The stock has fallen off a cliff. The disconnect is that the news out there does not correlate with the share price.

The short-term outlook is troubled: foreign exchange, their packaging business has diversified into flexible packaging. The packaging business' revenues are concentrated in the US, so there's pressure from the exchange rate. Also, input costs of resin (from oil and natural gas which are rising sharply). So, they're under-earning now. Also, Ottawa's emergency wage fund during Covid is now over. TCL should recover in 2022. It trades below 8x earnings, so the stock is now cheap. This is a value stock, so needs a catalyst. They just changed the CPO, which he sees as a positive catalyst.