So folks am I crazy? As the picture about shows my latest purchase was Corus Entertainment. Corus has had a rough period of late as they struggle to get advertising dollars. There profits and revenues have been declining.
What is Corus Entertainment?
Corus Entertainment Inc. is a media and content company. The Company creates and delivers quality brands and content across platforms for audiences around the world. The Company’s portfolio of multimedia offerings encompasses 45 specialty television services, 39 radio stations, 15 conventional television stations, a global content business, digital assets, live events, children’s book publishing, animation software, technology and media services. Corus’ roster of premium brands includes Global Television, W Network, OWN: Oprah Winfrey Network Canada, HGTV Canada, Food Network Canada, HISTORY, Showcase, National Geographic Channel, Q107, CKNW, Fresh Radio, Disney Channel Canada, YTV and Nickelodeon Canada.
On Jan 10, 2018 Corus released their latest quarterly earnings and it was a disappointing one. Investors starting selling their stock immediately. I think the only bright spot in the earnings report was the fact the company was able to increase it’s free cash flow to $83.2m from $33.9m. Today as I write this the dividend has ballooned to 13.77% that is a shocking number and even I would say the dividend will probably be cut. The company has repeatedly said that it’s important to the company to leave the dividend as it is. Only time will tell what will happen.
I bought the stock because I felt like the sell off of the stock was overblown. The stock started the day around 11.83, when I purchased it 11am the price was down to $9.62 so I was able to average down my costs.
Also another reason why is because I think the company can get themselves out of this mess. Now I admit I don’t have a clue how they will do it but I just have this feeling that they can.
On Jan 10th, 2018 I purchased 115 additional shares of Corus Entertainment @$9.62 a share. The cost of the purchase was $1,116.29. This is the second purchase that I have made, previously I owned 69 shares. So now I have 184 shares. My average cost has dropped from $12.85 to $10.82 with this second purchase.
Corus Entertainment currently pays a monthly dividend of $0.0950 for the time being. The additional 115 shares will provide me $10.92 per month and $131.04 annually.
Well folks what do you think? I know it is a little risky. Would you buy this company? Please feel free to leave a comment below.