Transcontinental: This Paper Tiger Could Yet Roar

Transcontinental Inc. would appear to have plenty of things going for it. It spins off lots of cash, has a solid balance sheet and regularly raises its dividend. What’s more, the company recently closed an acquisition that cemented its status as Canada’s largest commercial printer.

So you’d think Transcontinental’s stock would be climbing, right? Nope, it’s getting clobbered—to the point that some analysts say it’s a bargain.

In the past three months, shares of the Montreal-based printer and publisher have plunged about 26 percent, hitting lows not seen since the financial crisis of 2008-09.

“We see no rush to buy this stock,”