Bell Aliant (BA.TO)

TOP PICK
World-class with their fiber optics to the homes. In the right space with telcos, utilities and pipelines. Very stable dividend.
TOP PICK
Wire line but also in the fibre-optic business. About 5 million clients in the Maritimes, Quebec and Ontario. Dividend of almost 7%.
SELL
Has had a great run and is around because of the dividend. Basically a zero grower. Fully valued. Interest rates will be going up at some point. Would sell if he owned it.
PAST TOP PICK
(A Top Pick May 20/10. Up 23.48%.) Still likes.
TOP PICK
Chart shows a nice upward trend and broke through its resistance point. Have fiber optics into the homes. In the right space.
TOP PICK
Bell Alliant 4.85% Series A, Rate Reset: 99% of time company redeems them at reset. Solid stable earnings. Yield to call is 4.82%.
BUY
Fully priced in that it pays out close to 100% of its free cash flow and you are also paying a premium for the possibility BCE (BCE-T) will take him out. However, there is sustainability in the dividend. Putting fiber into 600,000 homes by the end of 2012 that will be a killer for their cable company competition.
BUY
You can’t guarantee dividends. Coverage in this case is not great, however, but parent wants the dividend. Believes the ownership of Canadian telecoms will be rationalized over time and he thinks BA will be acquired by BCE.
TOP PICK
Telecom space is fantastic currently. Chart shows a nice up trend and it just broke through resistance and set a new high for the year. Great payout, which they are pretty conservative with. One of the best at delivering fibre to the home.
COMMENT
Alternative to a corporate bond? Mainly land lines and revenues are atrophying. You’re probably OK for awhile,
TOP PICK
All other telcos have moved but this one is lagging but will start catching up. Wire line. Low risk. 6.7% yield.
BUY
Bell Aliant has a yield of 7%, 40% owned by Bell. Spending a lot of money installing fiber optics to the home. He feels that they will be rewarding by stealing so much of the market share and will be able to bundle their products. There is a risk that Bell may take them out. Also, they have pension liabilities. Generally, they like it.
DON'T BUY
A yield play. He likes a bit of growth to go with the dividend. He is always fearful that at some point inflation will really grab hold and if you have a stock without a lot of growth behind it, you’re stuck with the yield and that is your only defence.
HOLD
Likes this stock. Not going to take off and go anywhere. Gives nice income. Fairly defensive.
PAST TOP PICK
(A Top Pick Dec 13/10. Up 0.77%.) 4.72% bond due Sept 26/11.
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