Tag Archives: Phone hacking

Trinity Mirror (TNI) – Superb value, just when to buy?

A favourite value share amongst private investors is Trinity Mirror – owner of the Mirror newspaper and various regionals.

The share price has languished in the twenties this year before taking off and reaching the seventies. The funny thing is, this company is still stupidly cheap with a P/E of just over 2! A great write up can be found here, it’s a little old but the value case still holds true. So why not pile in?

My only quibble is the emergence of phone hacking allegations against the company. Until now TNI has not been prosecuted of sued for these claims. Very recently a lawyer has launched civil claims representing a handful of minor celebrities against TNI. The financial damage is likely to be small, especially when compared to TNI’s cash flow but the fresh allegations sent the share price down 20%. It has since recovered most of that but I am nervous to buy in now, knowing that developments in these allegations could present even better buying opportunities in the coming months.

I’m waiting on the sidelines with interest.