Transcontinental Inc. (A)

TCL.A-T

TSE:TCL.A

15.64
0.03 (0.19%)
Transcontinental Inc. is a Canadian newspaper publishing and marketing company based in Montreal, Quebec. The company is a major publisher of community newspapers in Quebec, and previously owned newspapers in Atlantic Canada and Saskatchewan.
More at Wikipedia

Analysis and Opinions about TCL.A-T

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
August 16, 2019
A printing company that's grown by acquiring. But printing is cyclical and a declining industry, and TCL won't perform well in the coming downturn. TCL has good managers, though. They've missed their numbers in recent quarters.
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A printing company that's grown by acquiring. But printing is cyclical and a declining industry, and TCL won't perform well in the coming downturn. TCL has good managers, though. They've missed their numbers in recent quarters.
PAST TOP PICK
PAST TOP PICK
August 9, 2019
(A Top Pick Jul 25/18, Down 49%) You have to have a sell-side discipline, and sold out before making devastating losses.
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(A Top Pick Jul 25/18, Down 49%) You have to have a sell-side discipline, and sold out before making devastating losses.
DON'T BUY
DON'T BUY
July 15, 2019
It pays a good dividend, but growth will be difficult. They need acquisitions to grow and this sector, magazines, is sluggish. Advertising has gone online, not in print.
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It pays a good dividend, but growth will be difficult. They need acquisitions to grow and this sector, magazines, is sluggish. Advertising has gone online, not in print.
COMMENT
COMMENT
July 5, 2019
A big drop at the end of February, perhaps due to earnings. Will it hold the current low of $14? So far it is. The market is currently evaluating this stock and falling to $7 is possible. Consider tax-loss selling if this drifts down.
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A big drop at the end of February, perhaps due to earnings. Will it hold the current low of $14? So far it is. The market is currently evaluating this stock and falling to $7 is possible. Consider tax-loss selling if this drifts down.
PAST TOP PICK
PAST TOP PICK
June 19, 2019
(A Top Pick May 24/18, Down 44%) They are transforming from a printing company to a packing company. They made an acquisition that still has not created traction. They spin off a lot of free cash flow -- about 17%. The valuation is only 5 times earnings -- very cheap. You could hold or wait to see some upside momentum to add new cash.
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(A Top Pick May 24/18, Down 44%) They are transforming from a printing company to a packing company. They made an acquisition that still has not created traction. They spin off a lot of free cash flow -- about 17%. The valuation is only 5 times earnings -- very cheap. You could hold or wait to see some upside momentum to add new cash.
HOLD
HOLD
June 3, 2019
This is a very strong management team. They made a decision to go into packaging, and there was a huge learning curve. Take a long term view on this one. It will take years to learn this new business.
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This is a very strong management team. They made a decision to go into packaging, and there was a huge learning curve. Take a long term view on this one. It will take years to learn this new business.
PAST TOP PICK
PAST TOP PICK
May 10, 2019
(A Top Pick Apr 05/18, Down 44%) A bad pick he admits. Commercial print business that tries to drive down costs in their acquisitions. A stretched balance sheet matched with an earnings miss. Trades 6 times cash flow and 7 times PE. The stock is too volatile and the balance sheet is at risk.
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(A Top Pick Apr 05/18, Down 44%) A bad pick he admits. Commercial print business that tries to drive down costs in their acquisitions. A stretched balance sheet matched with an earnings miss. Trades 6 times cash flow and 7 times PE. The stock is too volatile and the balance sheet is at risk.
HOLD
HOLD
April 24, 2019
He has exposure to them, but is taking a wait and see approach in light of the recent sell off. It appears cheap at 6 times earnings and a 5.5% dividend. He will not add to his position yet. Be cautious.
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He has exposure to them, but is taking a wait and see approach in light of the recent sell off. It appears cheap at 6 times earnings and a 5.5% dividend. He will not add to his position yet. Be cautious.
DON'T BUY
DON'T BUY
April 22, 2019
It's come off its price in 2018, nearly half its 2018 peak. His target price is $31.21, nearly double the current price. If this continues to fall, he will sell.
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It's come off its price in 2018, nearly half its 2018 peak. His target price is $31.21, nearly double the current price. If this continues to fall, he will sell.
WATCH
WATCH
March 27, 2019
Tough business, and they've navigated well, but there's only so much you can do. Now they've pivoted into packaging. Big learning curve. Made a few acquisitions that they're trying to integrate. They paid a hefty price to get in, and there are some big players. May take a few years to hit their stride. It's a show me story. Watch results to see things stabilize.
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Tough business, and they've navigated well, but there's only so much you can do. Now they've pivoted into packaging. Big learning curve. Made a few acquisitions that they're trying to integrate. They paid a hefty price to get in, and there are some big players. May take a few years to hit their stride. It's a show me story. Watch results to see things stabilize.
WATCH
WATCH
March 7, 2019

It's down about 35% over 52 weeks. They were in the print business and transitioned away from print. They divested and reinvested in assets to be more established in the packaging space. Previous acquisitions have worked well. You have to have patience with it. The dividend is safe for the time being. They took on a lot of debt when they made the acquisition. It's early and it will take time.

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It's down about 35% over 52 weeks. They were in the print business and transitioned away from print. They divested and reinvested in assets to be more established in the packaging space. Previous acquisitions have worked well. You have to have patience with it. The dividend is safe for the time being. They took on a lot of debt when they made the acquisition. It's early and it will take time.

DON'T BUY
DON'T BUY
January 17, 2019
BIP.UN vs. TCL.A? Hard to compare infrastructure to packaging. Doesn't have a problem with infrastructure, but the dividend doesn't grow the way he'd like, and the dividend is actually a combination of capital and interest. He owns BAM.A in TFSAs. Instead of TCL.A, he owns CCL Industries because they have greater free cash flow and dividend growth, a safer and less volatile investment over time. He goes for quality companies rather than chasing yield.
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BIP.UN vs. TCL.A? Hard to compare infrastructure to packaging. Doesn't have a problem with infrastructure, but the dividend doesn't grow the way he'd like, and the dividend is actually a combination of capital and interest. He owns BAM.A in TFSAs. Instead of TCL.A, he owns CCL Industries because they have greater free cash flow and dividend growth, a safer and less volatile investment over time. He goes for quality companies rather than chasing yield.
TOP PICK
TOP PICK
October 23, 2018

They've been beaten up after a big U.S. acquisition where they took over $1 billion in debt which the market did not like. TCL, though, has done successful acquisitions over the years. They were a printing business, but then sold those assets and smartly reinvested in labels. It takes time for the market to digest their large acqusition, but the U.S. business is similar to TCL's business here, so TCL knows that space well. He's confident it will work. Trading at 8x P/E.

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They've been beaten up after a big U.S. acquisition where they took over $1 billion in debt which the market did not like. TCL, though, has done successful acquisitions over the years. They were a printing business, but then sold those assets and smartly reinvested in labels. It takes time for the market to digest their large acqusition, but the U.S. business is similar to TCL's business here, so TCL knows that space well. He's confident it will work. Trading at 8x P/E.

PAST TOP PICK
PAST TOP PICK
September 27, 2018

(A Top Pick Aug 15/17, Down 5%) It has done really well for several years now, transitioning from the printing space to the packaging space. Most recently they missed on their numbers and it spooked the markets – be patent. It is still really cheap and the dividend is strong. This is a great entry point.

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(A Top Pick Aug 15/17, Down 5%) It has done really well for several years now, transitioning from the printing space to the packaging space. Most recently they missed on their numbers and it spooked the markets – be patent. It is still really cheap and the dividend is strong. This is a great entry point.

WATCH
WATCH
September 20, 2018

It is one he does not own. He has looked at it in detail. On a PE and multiple basis it trades cheap and always has done. Over the long term you will be able to see them pay a few extra pennies with dividend increases. The multiple looks attractive but don't catch the falling knife. Look for a recovery in targets.

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It is one he does not own. He has looked at it in detail. On a PE and multiple basis it trades cheap and always has done. Over the long term you will be able to see them pay a few extra pennies with dividend increases. The multiple looks attractive but don't catch the falling knife. Look for a recovery in targets.

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