Bell Aliant (BA.TO)

DON'T BUY
Mostly Eastern landlines. Had very good earnings last quarter, but looking closer at the numbers, a lot of it was IT consulting and equipment sales. There was a big decay in the operating business. Cable company competition is growing.
HOLD
Won't set the lights on fire, but a good, solid core holding. Some challenges achieving even modest growth. Focused on regional/rural areas, so have some insulation from competitive challenges that urban telcos are facing. Likes the name. Just increased distributions by 3%. Fully valued.
HOLD
Thinks it will go up in the near term. Not a huge fan of the business model relative to what else is available. Longer term, would look outside income trusts to something like Telus T-T).
HOLD
Owns most of the rural phone lines in Eastern Canada. Very stable business in the short term.
HOLD
An interesting income trust. Acquired Bell Nordique (BNQ.UN-T). Feels it can survive in this income trust scenario for some time.
WEAK BUY
Would prefer Bell Canada (BCE-T) because of its liquidity. Far easier to get in and out of it. Also sees a better growth rate in the dividends
BUY
10% yield. This will be pretty stable.
BUY
Better yields and Bell Canada. Less competitive landscape.
TOP PICK
Have about 3.3 million subscribers. A slow growth business. Losing some lines in Halifax but this will be mitigated. Growth of revenues of 1%. They will merge with Bell Nordique (BNQ.UN-T). 10% yield.
BUY
Will be a valid business 5 years from now. Has been oversold.
HOLD
Proposing to take Bell Nordiq (BNQ.UN-T) private which could probably cut a couple of hundred million dollars out of the cost structure.
HOLD
Getting to an interesting point. About a 10% yield.
BUY
3% growth. A good name for conservative investors. There won't be much capital appreciation.
HOLD
10% yield. Assets are fine. 2%-3% growth on a trust makes sense, but as a corporation, they are not going to be able to do much.
COMMENT
Possibility of further volatility. Volatility in the early days seems to be in the big liquid names. It is fundamentally sound and will continue to pay out high levels of income.
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