Prior to this pandemic and all the uncertainty provided by the spread of COVID-19, certain sectors were already on the rocks due to secular declines in consumer demand. Traditional television and media divisions at many large conglomerates have seen profitability drop as cord cutting among younger adults threatens the entire sector. Companies such as Corus Entertainment (TSX:CJR.B) certainly fit this bill.
With all the obvious headwinds hampering this sector, it may be a surprise to know insiders are showing a significant amount of interesting core stock. Heather Shaw, who sits on Corus’ board, has been snapping up shares during this latest leg down, prompting many, including myself, to take a look under the hood.
This stock is indeed cheap, trading around two to three times cash flow, but one must balance the risk alongside the reward when now analyzing this stock.
As always, please remember to consult with a certified financial advisor and do your own homework before making investing decisions. Insider buying and selling activity is not necessarily indicative of the future performance of a given company’s stock price, and insiders regularly buy or sell positions in companies they own or manage for reasons other than expectations of future stock price performance.
Analyzing insider transactions in a given stock is one tool of many to glean pertinent information to assist in investment decision making.
Invest wisely, my friends.
