Q: Canadian telecom stocks have not been performing well recently.
1 ) Are Canadian telecoms strictly comparable to U.S. counterparts like VZ which has also not performed well but appears to trade more cheaply and with a higher dividend .
2) And if they are comparable , might that suggest that the Canadian companies could play catch-up to the downside ?
Thanks
1 ) Are Canadian telecoms strictly comparable to U.S. counterparts like VZ which has also not performed well but appears to trade more cheaply and with a higher dividend .
2) And if they are comparable , might that suggest that the Canadian companies could play catch-up to the downside ?
Thanks
5i Research Answer:
Canadian and US Telcos will have some similarities but since the market in Canada is so much more protected, we would not necessarily view them as proxies for one another. We do think, however, that similar issues are driving both spaces which is questions around ability to push higher prices going forward and general slowdowns in the economy. The US telcos also took an extra hit on rumours of Amazon entering the telco industry, which we do not think would apply to Canadian companies.