Torstar was brought to my attention by a friend who wanted to know if the low was in. It had recently hit $1.16 or $1.20 depending on who you used for the info. It seemed to me that the question at this point is a little academic after the stock has gone from about $32 to $1, give or take 97% if my calculator still works.

To answer this question generically, the answer must be a resounding YES, it is a buy. The reason is rather simple and statistically speaking companies do not go down, if they go down, in a straight line. If you take a good look at companies like Loewen or Bre-X etc. they almost always bounce from near zero to $3, 4 or 5 before they disappear all together. If you are nimble the potential is enormous. In some cases the company comes back completely, a good example of that is ABB, Asea Brown Boveri  the Swedish/Swiss engineering giant. Here is that chart;

As you can see, the stock crashed to about $1, that is for the ADR. It immediately reverses itself and goes back up to $34. Tunnels are not always straight and that is why, at first, you cannot see the light at the end of it but after just a short time things can change rapidly.

The Toronto Star is Canada’s largest newspaper. Some think it is too left leaning but if you live in the country it is often the only one that is delivered to your driveway. It is hard to believe that it is about to go the way of the DoDo bird even if, ultimately that is the destiny of all newspapers. A buy if you ask me. Oh, by the way, the dividend is 7.35 % if Bigcharts info is correct.

That was good enough for us, sold at $9.90 just under the $10 target, almost 60% in a month in this market triggers the “how could I be so lucky” mindset. The stock not only reached its first target  but did it in a very nice 5-wave move, adhering to the basic Fibonacci ratio of 6 to 10. Moreover the technical indicators, RSI and MACD are clearly at extremes. If you are not yet out sell on the open Monday.

We commented on this one on Feb 15 when the stock was at about $6.20. It reported earnings that were not at all bad and now is trading at  $8.20 +, perhaps this time about 30% is enough, however , the stock will go higher. The exact count escapes me but I assume we had a 1-2, 1-2 to start the 08/09 drop and consequently there would be a 4-5, 4-5 to finish it of. That leaves us with , at a minimum , an incomplete a-b-c up, usually to the 4th wave and about 38%, neither of which has yet happened. Also there is a gap at about $7.40; these occur often in the middle. Here are the charts.

$10 is probable worth waiting for, $16 is posssible but do use a trailing stop-loss order.

By the way, I read that RBC DS has become extraordinary bullish on Bombardier. About time considering that this is the infrastructure stock par excellence.

Not sure what this one will do but I was asked the question. Here is my take, these people own the Toronto Star, the paper with by far the highest circulation in Toronto and surrounding area, all others are too capitalist to do home delivery outside the city proper. They also own assets like Harlequin, a  lightly sexy  romance series aimed at house wives who are still deploring the extinction of the mail man. The main competitor, apart  from the Globe and Mail, in the form of the Financial Post , is losing its touch, or at least its readership, and is barely surviving with one leg in the grave. So there is hope for Torstar even if it is not exactly our cup of tee. Here is the chart.