Bell Aliant (BA.TO)

COMMENT
These are the assets that Bell didn't want and couldn't grow. Pretty much a done deal that there won't be a lot of growth from the rural landlines. However it does give a pretty steady income. If interest rates are going down in Canada/US, the income stream becomes a little more attractive, which could give them a bit of an uptick.
COMMENT
Secondary market landlines rather than wireless. Slow growth. A fairly stable earnings growth story. When BCE gets de-listed there will be additional demand as people look for other telecom names to go to. For better growth prospects look at Telus (T-T).
HOLD
Continues to do very well. The one advantage they have over others is its regional focus. A very stable company. Looking at the valuations, he wouldn't buy it now.
TOP PICK
Had considered Cash as the top pick. This is a defensive choice. Fairly reasonably valued. When it reverts out of a trust, there won't be any downside move on the stock. Nice yield.
BUY
He owns this as a cash substitute. Earning 8.8%, whereas money markets are in the 4% range. Feels the distributions are pretty solid in a very stable business. A good, relatively safe income vehicle.
DON'T BUY
Primarily a landline phone operator. There is increasing competition from wireless assets. Didn't think the growth was sufficient to offset their competition.
HOLD
If the Teachers Federation takes over BCE, he would expect they would take this company over also.
TOP PICK
Bell Aliant Group is a fun pick. BCE owns a big part of Bell Aliant and can'tsee anything but good when the takeove is complete. Believes the evaluation over time is good.
HOLD
Wire line, slow growth at 2%-3%. BCE (BCE-T) going private should not affect it. Yield is about 8.5%.
BUY
Well priced and the cash flow is stable. Distribution is fairly secure.
DON'T BUY
Still have some major pension issues. It's land lines so not a lot of growth opportunity. Very competitive business.
TOP PICK
If it goes back to a corporation, it is fairly cheap. A defensive holding.
COMMENT
Sold their directory business to Yellow Pages (YLO.UN-T). Predominantly wire line with some wireless. Buying back stock. Prefers Telus (T-T), which has a decent yield and a much better growth potential.
COMMENT
Increased their distribution, which is positive. Just acquired Bell Nordique (BNQ.UN-T). This is more suited to an income portfolio.
COMMENT
Good company. Has some challenges in its business. Cable companies are starting to move in. Feels the distribution is safe.
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