Q: Lots of questions here -
What is the timeline for the cost cutting measures?
What are the metrics that describe the potential financial impact of the measures?
How would you rate the proposed measures are adequate to turn things around (low chance = 1, high = 5)?
All else equal, can you guess how BCE's stock price could go up with a drop in BoC interest rates, say by 0.5%, 1%, 2%, 3%?
Thanks a lot. Your guidance is superb.
What is the timeline for the cost cutting measures?
What are the metrics that describe the potential financial impact of the measures?
How would you rate the proposed measures are adequate to turn things around (low chance = 1, high = 5)?
All else equal, can you guess how BCE's stock price could go up with a drop in BoC interest rates, say by 0.5%, 1%, 2%, 3%?
Thanks a lot. Your guidance is superb.
5i Research Answer:
BCE has already fired 4,800 workers and plans cuts of over $1B. We would expect this to hit as a charge in the Q1 but there will likely be more cuts over the next 12 months, despite the company getting 'in trouble' with the government for the cuts. The proof is going to be in earnings and cash flow. BCE has been bloated for some time and we are sure it can run with lower costs. We would give it a '2'. We think more likely needs to be done. The last question is really just a crap shoot. The stock is going vary on so many other issues and not just rates. We would consider a 1 point rate cut likely good for a 5% stock move, but it really just is a guess.