Investment Q&A

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.

Q: Hi Guys:

Wondering your thoughts on CCA and CGO. Do you like either? And if so, which one do you prefer?

Thanks
DAVE

Q: Can you please explain the difference between these two companies? There is a big difference in price and targets Thank you

Q: Please comment on Cogeco results and please rank CCA vs. the other Canadian telcos.
Thanks for your ongoing great advice.
Rob

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

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?

Q: What’s your opinion of this company? Is it a buy?
Thanks.

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!

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?

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

Q: Hi 5I
Looking for some growth + income. Given the recent drop in cogeco share price would you consider this to be a good entry point to initiate a 2- 3 yr position or would you consider Rogers or Bce as better options?
Thanks

Q: Comment results please?

Q: Hi,
Why is a small sleepy company like Cogeco growing faster (than T and BCE) especially in the last one year? Would CCA be a better bet for long term growth? Thanks.

Shyam

Q: I am interested to purchase a full position to each Cogeco and Shaw Communications.
Which one is a better for a long term hold?
Thanks
Ernie

Q: Cogeco used to trade at a value less than cogeco communications but now that has reversed.
Why?

Q: Hi,

You just responded to my question but you didn't really answer it. I am trying to understand some potential reasons WHY Cogeco has erupted this year. Can you go a bit deeper in your response?

Thank you

Q: Please give an updated recommendation on Cogeco Communications.
The 12 month chart looks so much better than previous years.

The market is strong, but your recommendations still have a lot
to do with my success. Thank you!

Q: Is there any merit in considering a buy of these two stock in my TFSA, or would XHY as an ETF be better as I am a 77 year old senior?? Thanks.

Q: Can I get your analysis on CCA? Thanks.

Q: Can you provide an updated analysis and recommendation on Cogeco Cable (CCA)? I don't currently own it but would like to and noticed that its at a 52 week low. I've been a customer of cogeco for a very long time. Is the dividend safe? Is the business vulnerable to larger competitors like Rogers/Bell? Thanks again - John