Investment Q&A

Q: In a report dated January 14, 2014, TD Securities noted WIND Mobile withdrawing from the 700 MHx auction. The following is a precis of their 5 anticipated results.
1. A buyer sells the 700 to WIND
2. 700 buyer acquires WIND from Vimpelcom
3. Large new (foreign?)player acquires WIND
4. Industry Canada and the CRTC bump up the regulatory requirements and encourage WIND to buy the 700
5. Buyer just sits on WIND as investment.

Here's the quote that prompts the question.

" In all but the fifth scenario above, we believe that investors in RCI.B,T and BCE shares could face as much risk, or even more, over the next 12-24 months as they would have faced if WIND had participated in the auction directly. However, it would take several months for these scenarios to play out, and we expect a bullish tone in the interim..." They then raised the target price by $4 on RCI, $2 on BCE and $3 on T.

The price of BCE dropped by 12% on the Verizon news ($47-$41)
and the suggestion is that this could happen in the next year or so.

I had planned on buying BCE and T on a pullback, but I don't relish the idea of holding them under TD's warning. What do you think. I won't ask you to comment on their raising the target price after issuing a warning on what amounts to a 12% drop in the stocks! Thanks Tim...


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Q: I'm looking to get into telecom stock. Which do you prefer: Bell, Rogers, Telus? and why?

Q: Hello you all!
Is selling BCE and buying telus a good move?

Q: Is this a good time to own a telecomm ?
Should I look at a Canadian company , or am I better considering an international ?

Q: I own Telus shares and am considering selling my position. The company generates solid cash flow but at about 18 times earnings the shares seem expensive. The shares still look good for the 4% dividend and dividend growth over the next few years but growth could be limited from current prices. There is also the concern about the politics of Telecom in Canada currently as the federal government seems determined to reduce the major players' market share and margins. Technically the shares have had a substantial increase since early August. Do you think that it would be prudent to sell the shares at current levels.

Q: Would the $34-$35/ share price be a good entry level for an investor requiring income,some growth and exposure to the telecom space ?

Thanks.

Q: It appears that the VZ entry into Canada is unlikely . Which of our telecoms would you recommend as a buy at this time.
Thanks

Q: I am currently down $5 on Telus bought at $35 and am considering selling since reports indicate that the Government is not going to change the rules regarding new entrants to the Canadian wireless scene.
I am proposing to switch into Autocanada which you recommended on BNN last night. Am I overly worried about the entrance of Verizon in Canada? Is this a good decision?
Thanks David.

Q: hi 5i,
is this a good time to buy canada telco.'S, as they are down with the verizon scare?
any favourites among the top 3: T, rci.b, or bce?
thx chris

Q: Hi Peter and team,
is telus and CUS are buy at this price and why?

Q: I own BCE, Telus and VOD. I am considering selling VOD and buying more Telus and taking advantage of the recent Telus pull back. Thoughts ?

Q: Morning Peter and team , what do you think about buying telus at this price ? It has come off considerably due to sector and downgrades this morning . Or would it best to wait for a bottoming in the stock before stepping in . Cheers Carol .

Q: Telus/BCE - are these over sold or does Verison present a real threat?

Q: Telus and BCE vrs Verizon ?

Peter. I own both T and BCE and feel a bit nervous about the giant in the room, ie Verizon. If VZ with a market cap of 147B enters the Canadian market they will do so with a bang ( not a wimper like target),I am thinking of selling both as I feel the stocks will take a bit of a pounding if VZ does come to town.
Appreciate you time and knowledge
Cheers

Q: Peter; With the Telus current problems and the divvy stock rotation I am thinking of selling it and buying either BEP.UN or CIX? How would you see this switch? Thanks. Rod

Q: You recommend Telus (T) over other telecoms but it's Price Earnings ratio is much higher (18) than BCE (14) and Rogers (14). Isn't Telus risky because if they report a bad quarter the stock would drop further?

Q: Hi Peter and thoughts on the report yesterday issued by Veritas Investment research in regards to the big 3 telecom companies in Canada and the possibility of increased competition in this space? I see Rogers took a pretty good hit. The analyst is suggesting the possibility of a 15% hit in the share price of all 3 if the regulations are changed by June 5.
Thanks.

Q: Hello, Peter & Staff: After buying Bell Aliant (BA) for my TFSA three years ago at 26.00, it's still at 26.00 today. The dividend is very nice, but no growth after three years is a little discouraging. Now that Telus is at a more affordable price, and even though it's dividend is about half that of BA, I would like your opinion of selling BA and buying Telus - or perhaps Manitoba Tel. Part of my reason for purchasing BA was I thought it might be a buy-out at the time, but it would appear that such is not the case. Thank you for your advice and your much appreciated service. John

Q: Could you please comment on the 2 for 1 share split announced by Telus this morning. Also, how are dividends treated on a share split. Thank you.

Q: Rebalancing some long term investments & would appreciate your # 1 pic of the following: T, BCE or RCI - for gain not dividend.
By the way Peter, are you going to expand your coverage vis a vis USA or International any time soon??