For Subscribers

Get the complete article now!

TWST: What investment areas do you include in your coverage for Yorkton Securities?

Ms. Anderson: It consists of the broadcasters, publishers and printers. It will include New Media companies that are either sprung from traditional players or that represent traditional types of businesses, but done in new ways. Those areas are really being established and carved out now, although there are not a whole lot of public companies in the Canadian space at this point.

TWST: Do you happen to like any of the stocks at the current price?

Ms. Anderson: We do. CanWest Global Communications (NYSE:CWG) is a story we like. It is probably the only Canadian broadcaster with significant geographical diversification. They're the largest private broadcaster, in conventional terms, measured by revenues and profit in Canada. They also have networks in New Zealand, Australia and Ireland now, in addition to some newer radio assets, and a growing production business.
Here, we would be buying on the basis that this company has always demonstrated discipline in how it builds its business. The criteria by which it takes on assets are thoughtful. They're value producing, and they've stuck to those principles for good or for bad. And clearly, they have planted some developmental seeds in the last few years that will eventually bear fruit. So we would be buying on the basis of valuation and management track record. Even though it's a little bit out of favor, this will be the kind of stock that when it encounters its turnaround catalyst, investor psychology of “you see, this has always been a great company” will return.