Trading Update4 May 2018 10:15
This company is a toss-up. On the one hand, valuation has been decimated, but on the other hand, the business model (print industry) is on their last legs.
In the short-term, Trinity Mirror will defend their valuation because it holds real tangible assets of �170m. Their net debt of �88m isn�t a big concern because of positive operating cash flow. Also, it manages to agree on annual payments of �44m to the pension pot for the next ten years, equating to �444m vs. �378m in pension deficits.
Market concerns are on the company falling revenue and the impact it will have on profits in the future when Trinity can�t make further acquisitions because of competition rules. And that won�t be in a few years� time.
I think in the short-term, Trinity Mirror can continue to see their share price rise further, but the rise will be limited, so sell at up to �1.25 per share (�340m valuation). Personally, it�s too much of a risk for medium to long-term shareholders.
For more on yesterday�s update from Trinity Mirror and the interpretation of Ophir latest acquisition and annual results from Elektron Technology, click http://bit.ly/2HP2vzU