Bell Aliant (BA.TO)

BUY
Good utility income fund.
BUY
Just reported good numbers. Attractive yield. Slight possibility that Bell Canada (BCE-T) at some point buys it. Safe. No financial issues.
HOLD
(Market Call Minute.) Distribution is safe. Little bit expensive but very stable and safe.
BUY
Likes businesses that have structures of everyday life. You need telephone and you need cable. Ideal in the income fund structure. 12.5% yield.
BUY
The assets that were spun into this from BCE, excluded the wireless, which is where all the growth in the telecom space is. Its regional nature means less competition but wireless and cable is having an impact. A decent yield play. Not a homerun but a decent single.
BUY
(Market Call Minute.) Possibility that BCE (BCE-T) could take it back. Solid revenue. Competition is not that progressive.
BUY
Distribution of around 13%. Somewhat economically sensitive, but not a huge amount. Distributions are fairly secure. Should still be able to pay very high distributions even after incorporation. Strong chance that BCE (BCE-T) could bring in back into the fold.
HOLD
(Market Call Minute.) Whole regional telecom industry is going to face some difficulties. Really don't know what's going to happen in the post BCE-Teachers situation.
BUY
Operational focus is Northern Ontario and Northern Quebec. A rural landscape where there is not as much competition.
BUY
Provides mostly wire line services to the Maritimes and rural communities in Ontario and Quebec. Won't be paying any cash taxes until 2012.
BUY
The main wire line company in eastern Canada as well as rural Ontario and parts of Quebec. Excellent value here. Yield of 11.4%. Pretty close to recession proof. Very stable cash flows.
HOLD
Likes the business model and management. Thinks the assumption that BCE will close is built into the price. Doesn't expect a lot of downside risk. However, as an income trust, it is going to have to go through the conversion process. He will hold this over the next year to see where it goes. Likes the telco space.
HOLD
(Market Call Minute.) Would almost support a Buy if the deal with BCE goes through, as they would get more assets.
COMMENT
Just reported and earnings were good. Debt is a little high but the underlying assets are quite stable.
COMMENT
Business itself is a decent one but what he doesn't like is that it is land lined in eastern Canada and not cellular. An ideal cash cow business.
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