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  5. CCA: Hello 5i, I recently came across CCA in one of your latest screenings. [Cogeco Communications Inc. Subordinate Voting Shares]
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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello 5i,
I recently came across CCA in one of your latest screenings. I need to add about 1% to the Communications sector and already hold BCE (RRSP) and T (TFSA) as pretty much full positions - at least if they stop being 25 - 30% under water!!
With the 6% yield on CCA (and the last question asked in January), I was wondering if you had any updated thoughts on adding this one to an RRSP, soon to be RRIF, for retired, conservative, income-oriented investors OR would you just add to either BCE and/or T, or go with a new position in Rogers or perhaps VZ:US?
Asked by Mike on May 22, 2024
5i Research Answer:

While CCA is cheap, certainly, it is hard for us to give it a strong endorsement. Debt is very high and growth is not high enough. Estimated EPS in 2025 is going to be barely above levels seven or eight years ago. VZ is also cheap at 8X earnings, but in much the same boat. But debt is even higher and earnings performance even worse. At current valuations, we would prefer to add to T and BCE over these. RCI.B we think would be fine if one wanted a new name. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in VZ.