BCE Inc. (BCE.TO)

For the Canadian telcos, regulatory challenges won't go away. In response, the telcos pledged to invest in rural areas, but those areas now have Starlink. Also, Freedom Mobile and Quebecor have added a lot more competition. The telcos won't bounce back anytime soon.

For the Canadian telcos, regulatory challenges won't go away. In response, the telcos pledged to invest in rural areas, but those areas now have Starlink. Also, Freedom Mobile and Quebecor have added a lot more competition. The telcos won't bounce back anytime soon.

Likes it at this level. Dividend absolutely secure. Throwing off additional free cashflow, which will probably be used to reduce debt somewhat. Room to invest in some growth. Defensive, not growth. Possibly delivers double-digit returns over next number of years.

All the telecoms are debt-laden, and they have to pay interest on that. Unable to get pricing power from the 5G movement. Now we're coming up on 6G, so they're going to be spending more. But revenues aren't rising. Even YTD, these stocks are slipping. 

Still not a great entry point.

It's solid at this level, nothing wrong with it. They didn't need to cut the dividend; they generated enough cash flow. They pay an 5.43% dividend, sustainable. Restructuring could work.

The environment for these companies has been very difficult. He sold at the beginning of this year.

He avoids telcos. BCE is tied to the Canadian economy, of which he's not optimistic about it. The cell phone business is now competitive. The days of a regulated utility are over. They bought a US company to get growth. 

Follows both, has owned both in the past but not today. Quickest answer is not to invest in either. 

The reason against BCE is its growth profile. See his Top Picks for BIP.UN, an income name with a much stronger growth profile at a very attractive valuation.

He's not a big fan of momentum trades, but he doesn't keep his head in the sand either on stocks he already owns. Five or six brokers have just upgraded this name, this affects the quants, which affects the fund flows. Met with management, very pleased with tack being taken. Ziply has potential for upside surprise. 

As markets get choppier and froth starts to come out, will probably see money flow back to what's cheap and stable. He tax-lossed it for some clients, others will too, so January will see some buying coming in. This is a long-haul play; frustrating to see it fall from $63, but will probably make it back someday. Yield is 5.35%.

#1 would probably be Telus. BCE is also in there. Names like AC, MFI, PRL, GSY, WFG, and TFII. All of these stocks are cheaper than they ought to be. All things being equal, those names should be higher in January than they are now.

He sold it at the start of the year. It's hard to own the telcos (still holds Telus). The problem is that the expectation over 5G hasn't paid off yet. Also, the capex spend is high. Third, they hold all these media assets. He'd rather see a purer telecom play. Also, the CRTC wants more telco players. It was good that BCE cut their dividend, but should have done it earlier.

The question was on both companies in the telecom sector. BCE did an acquisition in the US and have to prove out those numbers as well as get the leverage down. Telus didn't fall on the same hard times and the dividend is solid. Wireless is starting to turn better and landlines too. Three to four quarters should show unproved financials. Both have turned the corner.

Still sees it as a pretty asset-rich company. Dividend's been reset. Stock has attracted a few upgrades. Bounce from $29 to $34 is already pretty significant. Happy to buy down here where nobody wants it. It's one of those durable companies, need for telecommunications is not going away.