Bell Aliant (BA.TO)

DON'T BUY
Doesn’t have much growth but you get safety in yield. He prefers BCE.
WEAK BUY
Get the dividend, which is safe, but you won’t get any growth out of it. He doesn’t own any telecoms because they opened up to more competitors. There are other risks to the business like Netflix. He owned Rogers and Telus and sold both recently.
TOP PICK
Big yield, stable. They did the conversion to corp. very nicely. One of the only direct to home fiber optics. A really boring, no brainer. Doesn’t think a possible takeover by BCE is built into the price. Not the best sector if interest rates rise.
HOLD
Regional Telecom provider in Eastern Canada. Recent report was within expectations, but nothing stellar. Dividends look reasonably safe. Low payout ratio.
COMMENT
Low growth boring business but dividend is definitely sustainable. Doesn’t expect Bell (BCE-T) will take them over. Better growth elsewhere.
TOP PICK
They pulled away some of the distribution. Now about 7%. One of few that will be direct to home fiber. Potential take-out. Good support. Excellent cash flow.
DON'T BUY
One view is that BCE (BCE-T) is going to have to Buy it at some point. Anther view is that they are going to have to trim the payout. There are other things that have more income and more upside.
COMMENT
A widows and orphans’ type stock. Good quality business. Wire line business in the Maritimes, Quebec and parts of eastern Ontario.
COMMENT
Recession resistant and had fairly consistent numbers during the pull back in the economy. Would prefer names that have more influence in terms of the actual recovery.
TOP PICK
Has pretty good support around $26, otherwise good support around $25. Down trend has been broken. Going to be bringing fiber to the homes. Good defensive and income play.
TOP PICK
4.72% bond due Sept 26/11. 4-month bond that will preserve your capital when interest rates blow out. You’ll still have your money and you’ll have a better idea of what is happening in bond yields.
DON'T BUY
Likes the telecom sector but would prefer the leaders such as BCE (BCE-T). This one is an under performer.
TOP PICK
Looking at this as it plays into the income theme. Made adjustments on their conversion to a corporate structure. Have a tax situation that will be applied. There will be 600,000 homes that will be going direct to fibre, which will help retention. Dividend will be about 7%.
DON'T BUY
30-Year Bonds 6.25%. Doesn’t trust the company. The credit is ok. Would prefer something in the middle of the yield curve.
TOP PICK
Bell Aliant 4.37% 09/13/2017 Bonds. Likes the stock but you get volatility. Not with the bond. 200 Basis point spread against Gov’t bonds.
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