Not buying: Torstar

Estimated reading time: 74 seconds

I want to like Torstar. It has all of the traditional value markings (low p/b, p/s, no debt, etc) but is probably quicksand for your money. 

In my younger days I spent time as a newspaper reporter. I've seen the value of good journalism first-hand. But even before the internet took completely over (early 2000s), I remember wondering how tuned in the public was to what we were doing. Many of the publications I worked for were free, but I still saw overflowing newsboxes all over the city. My friends, aside from the working journalists, did not seem to know or care what was happening in the news. Being a newspaper reporter 15 years ago didn't carry much stroke.

Now I'm not sure if it carries any.

Torstar's flagship publication, the Toronto Star, has had some famous reporters. And it is, somewhat ironically, Torstar's traditional media assets that are keeping it in the game. Its digital investments have flopped badly.

What's more, they're nerfing Torstar by re-adding a paywall. Not only are paywalls dumb - they are exceedingly easy to get around. I empathize with the need to keep revenues coming in but a paywall seems like an old, failed solution to me. I'm not sure what would be better - using Snapchat so your paper vaporized after a while? 

I have no idea how to fix newspapers but restricting access to content that people are only semi-interested in isn't going to do you any favours. Remember, interest was waning even in the bad old days. 

I truly hope I'm wrong about this one but I would not invest one nickel in Torstar at this time.