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Rogers Communications Inc. Class B Non-voting Shares (RCI.B)
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Cogeco Communications Inc. Subordinate Voting Shares (CCA)
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Cogeco Inc. Subordinate Voting Shares (CGO)
Q: Hi Team,
Would you choose Rogers or Cogeco to get exposure to the wireless sector?
I would lean towards CCA due to CDPQ "partnership" that could limit the drawdown in my opinion and the high leverage of Rogers.
Second question ? Would you prefer CGO vs CCA to get exposure to Cogeco and why?
Thank you !
Michel
Would you choose Rogers or Cogeco to get exposure to the wireless sector?
I would lean towards CCA due to CDPQ "partnership" that could limit the drawdown in my opinion and the high leverage of Rogers.
Second question ? Would you prefer CGO vs CCA to get exposure to Cogeco and why?
Thank you !
Michel
5i Research Answer:
It is a difficult choice. CCA is much cheaper, but in a good market investors care less about leverage, and RCI.B will likely see better earnings growth. With the partnership CCA may be safer even it is smaller, so much here depends on investors' goals. We would, being growth-focused, prefer RCI.B as we do think markets will be OK for a while. CGO is very small and we think mostly trades for its yield. Of the two, we would prefer CCA. CCA has also outperformed over the past year.