Q: Hello 5i team,
I am wondering if I should add (or sell) to these two stocks since they are down significantly. Telus is down because of the TIXT forecast. How much of TIXT is owned by Telus? T is almost at where I purchased the stock so my question is if there is a better telco I should purchase other than Telus for income?
Also what is the reason that NBLY is down so much? Is it simply market patience or is there something more fundamental that investors do not like about this stock?
Thank You,
Andrew
I am wondering if I should add (or sell) to these two stocks since they are down significantly. Telus is down because of the TIXT forecast. How much of TIXT is owned by Telus? T is almost at where I purchased the stock so my question is if there is a better telco I should purchase other than Telus for income?
Also what is the reason that NBLY is down so much? Is it simply market patience or is there something more fundamental that investors do not like about this stock?
Thank You,
Andrew
5i Research Answer:
Telus stock is in the doghouse, due to higher interest rates and weak results at TIXT. T owns 56% of TIXT as of last report. At current levels, we would still be OK holding T for income. The payout ratio is low and Telus has recovered from other issues before. TIXT is not overly material to its results, at least in terms of cash flow. Still, investor sentiment will likely take some time to recover here. Please see this recent answer on NBLY.