Q: BCE is so hated right now, it's trading like it's doomed if the dividend doesn't cut substantially. Dividend is now yielding 11%. Is this the next AQN or do they have a chance to turn things around with divesting TSN, laying off more people, etc? Was the Ziply purchase too high? Is the Air Canada Wifi deal a bad one or even move the needle? Is the Palo Alto partnership also bad? Seems like every news story coming out just drives the price down. I never want to catch a falling knife, but is the story really as bad as it looks right now and could this be a good opportunity to actually get in low with a high yield? Even if they cut it in half it would still be a great yield at this point. Maybe I'm blind, but I'm seeing more upside to this than downside at this point.
5i Research Answer:
We think BCE is in a situation that could be considered a classic value trap where it always...