# TRI - Thomson Reuters



## gibor365 (Apr 1, 2011)

Was wondering what do you thing about TRI? It's the only stock who pay good dividend and also dividend contender (they increased dividends for 18 or 19 consecutive years) .
Now they are trading at 52 weeks low. Yield is historical highest and I just don't see it can go much lower.


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## doctrine (Sep 30, 2011)

It's on my watchlist.. quite out of favor with most people. But I always seem to find more compelling stocks elsewhere.... they are small dividend raisers (~5% annually) although quite consistent. This would imply that you can expect a long term return of 8-9%, providing their revenues don't drop.


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## HaroldCrump (Jun 10, 2009)

I took a quick peek...it seems to be unusually volatile today.
Anything major happening?
Or maybe CMF postings can now move the market


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## humble_pie (Jun 7, 2009)

any interest in this stock has to with the recent resignation of ceo tom glocer, the last of the bigtime news execs who arrived from reuters london when thomson bought reuters news some years back.

news never made any money.

it's now thought that, with dwindling interest in news part of the business out of the way, TRI might be free to concentrate on selling its financial, legal & medical data bases. It's thought these could be more profitable. There are contrarians who note that banks & financial institutions are cutting costs like crazy & much of the data bases they need can now be jerried up for free, so why would they continue to pay for reuters data services. 

i for one admire tom glocer. A newsman to the marrow of his bones. Haven't had time to read his own recently-created news blog, but i certainly intend to. Here it is:

http://tomglocer.com/


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## gibor365 (Apr 1, 2011)

humble_pie said:


> There are contrarians who note that banks & financial institutions are cutting costs like crazy & much of the data bases they need can now be jerried up for free, so why would they continue to pay for reuters data services.


on one hand you are right, but on other hand I was thinking that stocks like Cineplex gonna get killed... why to pay if you can download movies for free via the Web?! (and every second person doing it). But they are doing not too bad  

One more thing, there is a dividend investment strategy 
, to buy solid long-paying dividends stocks when than undervalues and sell when they overvalues referring to the yield. (when yield in high - buy, when low- sell).
TRI yield now is all time high and this is one of the Canadian interlisted stocks with the biggest history of increasing dividends (18 years).
For comparisson other Can stock that increased dividends for at least 10 years:
CNI 16
CNQ 11
ENB 17
IMO 19
SJR 10


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## Loon (Apr 12, 2012)

Does anyone know why this stock is down today? They reported earnings but all the news I've read on it seems positive.

Why is the EPS reported as negative?


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## humble_pie (Jun 7, 2009)

Loon said:


> Does anyone know why this stock is down today?



tri held a conference call w analysts this am in which they forecast continuing decline in net new sales in their bedrock finance & risk division.

the revenue impairment they are experiencing - which they say they expect to continue - comes from cancellation of data services by ailing financial institutions, particularly european banks & financial institutions.

here's a link to the transcript of the analysts' questions about these issues & the tri responses:

http://seekingalpha.com/article/765...sults-earnings-call-transcript?page=6&p=qanda

if you look back through the front pages of this conf call transcript, back to where the company officials are speaking, you'll see that they are fairly cheery about their prospects & accomplishments since the firm provides data services in other fields such as legal.


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## Loon (Apr 12, 2012)

Is anyone buying this stock? Is anyone selling? 

Is that negative EPS on google and yahoo finance a type-o?


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## doctrine (Sep 30, 2011)

Must be - TRI is very profitable. However, P/Es can very widely. They're about a 14 based on last quarter's earnings. I haven't taken a closer look, but TRI is a steady eddy 6-7% a year dividend increaser... I am tempted to buy it whenever it hits $27ish.


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## AltaRed (Jun 8, 2009)

An old thread, but what the heck..... If anyone is a holder of this stock, have you received TRI's Offer to Purchase (Share Buyback) and have you decided whether to offer up some shares via one of the 3 Modified Dutch Auction options? The share price popped some on the announcement and is currently trading in the $45USD range, likely about the price TRI will end up paying for its $9 Billion re-purchase, about mid-point of its $42-47USD offer range. At the low end, $9B of stock would take about 30.6% of the float off the market.

I likely will not participate, electing instead to sell on the open market if market price reaches $47USD, or failing that, hold for a proportionate increase in my share of the company post-repurchase,


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## gibor365 (Apr 1, 2011)

I hold it, but didn't receive anything yet


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## AltaRed (Jun 8, 2009)

A lot of money gets spent on circulation materials.... 65+ pages of 'watching paint dry' reading. I won't be reading it all.


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## gibor365 (Apr 1, 2011)

AltaRed said:


> A lot of money gets spent on circulation materials.... 65+ pages of 'watching paint dry' reading. I won't be reading it all.


I never understand why I cannot opt out of those "circulation materials" and get some cash instead..... Every week I get different staff that goes directly into recycle bin... If I'd like, I'd read it on the Web


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## humble_pie (Jun 7, 2009)

AltaRed said:


> A lot of money gets spent on circulation materials.... 65+ pages of 'watching paint dry' reading. I won't be reading it all.




might i urge anyone planning to tender to the offer to read the circular with great care. The end product wlll be cash; but it will come with a big surprise. Especially for certain parties with high income profiles.

it might be a good idea to focus on section 12, page 49, "Certain Canadian Federal Income Tax Considerations."


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## humble_pie (Jun 7, 2009)

does anyone have a handle on guesstimating the post-offer market price of surviviving publicly-traded TRI shares?

at $9 billion US dollars - just under CAD $12 billion - this is one of the biggest buybacks in canadian history. There are striking consequences for canadian shareholders who tender to the offer via any of the different modalities.

something like a third of existing TRI stock will be cancelled. Majority shareholder the Thomson family of toronto will tender to the offer proportionately in order to maintain their current majority status.


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## AltaRed (Jun 8, 2009)

Indeed. I picked up on that on another forum. Caveat Emptor.


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## humble_pie (Jun 7, 2009)

AltaRed said:


> Caveat Emptor.



in hoc casu, illud est Caveat Venditor


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## james4beach (Nov 15, 2012)

@doctrine and @AltaRed do you still hold this?

I bought some TRI this week. I had ignored this for years, but recently I looked at their financial statements and was kind of impressed. I had made assumptions about the nature of their business but it seems I was wrong. The company seems to be in a different line of business than I thought! Obviously they pivoted in the last few years, and apparently, successfully.

This is NOT a news or media company. That was the big surprise for me.

Their "Legal Professionals" segments is the biggest revenue source, resources for research and analysis, large and medium sized law firms, including the US Government. And "Corporates" segment is their second largest, a suite of tools for in-house legal / tax / regulatory / compliance.

Meanwhile, News & Print (which is what I thought Thomson Reuters was!) hardly matters at all.

What I find interesting about this is that the TRI revenue lines might offer *good diversification* for my portfolio because of the unique nature of these services. It's not a tech stock, not a media company, not a financial company. There are other "professional services" stocks out there, but most of them seem to be in engineering / construction.


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## AltaRed (Jun 8, 2009)

I actually decided to take advantage of its surge last Oct and sold on Oct 13, 2020 and then bottom fed into BAM.A on Oct 28, 2020. This was not a case of not liking TRI but I believed BAM.A was a better opportunity at the time. At this stage of life, I am not a net buyer of any stock. At most, I will do a swap if I believe a good opportunity exists. 

FWIW, I expect TRI's business model will continue to do well. Like BAM, I think TRI doesn't fall into love with their businesses. They will shed stuff to get into better opportunities. I may have been better of to sell other holdings that are 'stuck in their space' instead of TRI.


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## james4beach (Nov 15, 2012)

AltaRed said:


> FWIW, I expect TRI's business model will continue to do well. Like BAM, I think TRI doesn't fall into love with their businesses. They will shed stuff to get into better opportunities. I may have been better of to sell other holdings that are 'stuck in their space' instead of TRI.


Thanks for the thoughts on this

I know that my stock picking may not beat the index, but I really do enjoy looking at these individual companies and seeing their financial condition. Most recently I have been studying TRI and IFC (Intact Financial). Both of these seemed to handle the COVID economic shock quite well.


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## doctrine (Sep 30, 2011)

I guess I don't understand the valuation on TRI. 10 years ago I was looking at this stock, it had slightly higher EPS then compared to now, on much higher revenue. So a smaller, more efficient company these days, but less earnings per share on an absolute basis after all of its transformations. But the valuation went from P/Es of 17-20 to a P/E now of 50-60+? I suppose if they are looking at a lot of growth in the future, then it makes sense, and I can't speak to expectations moving forward. Would have made me a high return though, as you would expect seeing 200%+ P/E multiple expansion.


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## AltaRed (Jun 8, 2009)

I am not sure the P/E ratio is reflective of the company today given all the asset changes they have made that skews results in the short term but one reason I got out in favour of BAM was multiple expansion. Without digging too deep, their business model is not unlike that of Constellation Software with their lines of business mostly being services and sticky. Hard not to have confidence that it is a money making machine.


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## james4beach (Nov 15, 2012)

Well this thing has quickly become one of my new favourite holdings. Since I bought in June, it's up nearly 20% (way more than the index) with a big boost from positive earnings today. They beat estimates and raised their revenue forecast for the rest of the year.

Not saying anyone should buy it now (it's in the stratosphere) but might be good to keep watching


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## james4beach (Nov 15, 2012)

Continues to be ridiculously strong. Once I have a "winning" stock I don't question it, continuing to hold until I do my portfolio review next summer.

TRI is up 52%, ytd, which is double the TSX index (XIC).

As mentioned earlier in their thread, I just like the nature of their business in professional services, to diversify my portfolio.


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