Bell Aliant (BA.TO)

PAST TOP PICK
(A Top Pick March 25/11. Up 10.04%.) Telecom sector should be bottoming out now. Have a competitive advantage in fibre optics to the home.
DON'T BUY
Wonderful company that has done very well over the years. The problem is that you are buying somewhere about 10x book value and doesn’t fit definition of cheap.
DON'T BUY
Did well building out some of the infrastructure. Added IP TV to their roster. Have done some interesting things lately. Questions sustainability of the dividend, as they haven’t been earning their dividend. He would be weary of it.
DON'T BUY
Has trimmed it down. Well-managed company. What he worries about is the new technology, wireless and Internet is not big enough in that company. Wire line is declining as a portion of business. Decent yield that is safe for now.
PAST TOP PICK
Recommended at 25.15, now 25.68 up 4.5%. A little higher dividend yield. Performing as expected, continues to pay dividend.
SELL
6.4% strip bond maturing in 2031. Doesn't like long-term corporates and the strips I really asking for trouble. Very volatile and that is a long time for corporations to survive. If you do sell, be very careful to see what the bid is compared to the value is in your statement.
BUY
85% of free cash flow is paid out so dividend probably won’t go up. It is possible Bell could want to take them out. IT all comes down to fiber. They are doing fiber to the home. It is the first time they will be able to compete on the TV space. He owns the debt and the stock. Likes the company, but it is early days.
PAST TOP PICK
(A Top Pick March 25/11. Up 6.89%.) Sector is kind of getting long in the tooth right now. He is looking at whether he wants to keep it or go on to better ideas.
TOP PICK
Into the fibre optics business with 5.3 million clients. Into the Maritimes and moving into Sudbury. A rumour got started that they were going to cut their dividend but management denied this. Dividend is relatively safe.
COMMENT
Won't be a growth stock but has a good dividend. 7% yield.
COMMENT
There are 2 stories that alternate about this company. Negative story is the sustainability of the dividend. Have cut off most of their operations in the slower growth parts of the country. Positive view is that at some point Bell Canada (BCE-T) rolls it in. Both of these things may be the reason why it trades in a fairly narrow range. He would only Buy for income, not appreciation.
SELL
6.4% strip bond maturing 2031? If you own, he would recommend you sell. It's a long time for a Corporation never mind a bond.
TOP PICK
Slow and steady and a nice dividend. Doing well in their market area. A good, reasonable income producing stock. Best dividend of any Telco stock.
PAST TOP PICK
(A Top Pick Jan 5/11. Up 11.82%.) Picked them because of fibre optics to the home. World-class leaders in what they do. A little more debt than he would like but a fantastic yield.
BUY
Yield of around 7%, which he thinks is sustainable. Free cash flow of about $500 million. They’re spending a couple of hundred million dollars creating a fibre network to homes in the Atlantic provinces. And they will be taking market share.
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