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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 Peter and Staff

Read an article expounding the virtues of Cogeco and its holdco . Article cited low P/E and payout ratios as well as equivalent dividend rates based on current price with expected re rating to get discounts lower than present versus BCE and T. What do you think of this and as well the option of CCO versus CCA
Thanks for all you do
Dennis
Read Answer Asked by Dennis on November 15, 2023
Q: Hello 5i Team

I currently hold shares in Cogeco Communications Inc. (CCA) which currently have a capital loss.

Can I sell Cogeco Communications Inc. (CCA) and book the tax loss and concurrently purchase Cogeco Inc. (CGO) as a hedge for the next 30 days and then re-buy CCA.

Would this keep me on-side with Canada Revenue Agency and the superficial capital loss rules?

Thank you
Read Answer Asked by Stephen on January 24, 2023
Q: Plea.se comment on Telus results.
Also, I know your two preferred companies in the Canadian telco space are Telus (growth) and BCE (income). I ran a comparative chart for T, BCE and CCA, the results are overwhemingly in favour of CCA at every timeframe (1 month, 3month, 1 year, 3 year and especially 5 year). Excluding dividends CCA is up 80% on the 5 year vs. T at 35% and BCE down 4%. YTD CCA is up 18% and BCE is flat in this very strong market. Is there something in the risk profile of CCA that I may be missing? Any thoughts on why CCA has been so strong YTD.
Thanks for the great service.
Read Answer Asked by Robert on February 16, 2021
Q: No rush to answer. Retired, dividend-income investor. I am a position "light" in the Communications sector. I already have a full position in BCE....looking to add one of Telus, Shaw, Cogeco, Rogers or another name you might suggest.

When I look at the various metrics (P/E, P/BV, P/CF, P/S, ROE) I filtered out Telus, leaving SJR and CCA and RCI. Reading past questions, some quite dated, I am wondering if time has changed your opinions on these three.

Shaw has a nice (5.4%) but slow-growing dividend. ROE 10%. It's chart looks good from a value point of view, but is it a value trap? Very poor momentum.

Cogeco has a lower (2.6%) but faster growing dividend. ROE 16%. It's chart shows better momentum. I also wonder whether a new takeover offer might be in the future?

Rogers is just ok across the board.

I'm leaning towards Cogeco, but wanted your advice first. What odds would you place on a take-over happening? Please rank all three in order of your preference to buy.

Thanks...Steve

Rogers
Read Answer Asked by Stephen on December 30, 2020
Q: Thinking of adding some telecom/media exposure to my portfolio. BCE is the only one in your portfolios. Would you buy BCE right now or do one of the others offer a better buying opportunity currently. 5 year hold, I follow a hybrid of growth and income portfolios with more recent moves toward income thus the interest in these names. Or is it evan a good time to buy into this sectors?
Read Answer Asked by Tom on December 11, 2020
Q: I currently hold BCE, and I was wondering if it might be worthwhile to sell BCE to purchase Cogeco, as there was previously an offering by Rogers and Altice to buy the remaining shares at what sounded like roughly a 60% premium to current prices. I know the offer was explicitly rejected, but could this mean that either another offer is on its way, or perhaps that there is significant untapped potential in Cogeco? If this is a worthwhile trade, shares of CCA do more volume than CGO - would that be the more prudent purchase? As always, I appreciate your insight, and look forward to reading your comments. Thanks again!
Read Answer Asked by Domenic on November 12, 2020
Q: The market is clearly indicating the Rogers Altice bid for Cogeco is not going to be successful. That being said, share price is now only marginally above March lows, so is the stock a buy even without the bid. Good results today with a dividend increase.
Bid is more than 55% above current price with the belief that Rogers and Altice could still come to the table with a further sweetening of the bid and as you often say the chance of the bid being successful is above 0%. Seems like limited downside with the remote possibility of huge upside. Would you buy here?
Read Answer Asked by Robert on October 29, 2020
Q: Hi 5i team,
Rogers and Altice are back again with a higher offer for CGO and CCA. The Audet family, who hold the controlling interests, have rejected it again and have stated that this is not a negotiating ploy. The revised offer will be submitted to the Boards of CCA and CGO. What in your view typically happens in hostile bids with a controlling shareholder? Does the controlling shareholder really control how these events unfold or do the minority shareholders start applying pressure to start negotiating and then it becomes merely a matter of price?
Thanks for the insight.
Dave
Read Answer Asked by Dave on October 20, 2020
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