Cogeco Communications (CCA.TO)

Cheap share price at the moment.
Does not own shares.
Space looking attractive as interest rate come down.
Seem to be struggling with US assets.
Better names in sector (BCE etc.)

The US was a growth driver for them, but are facing more competition there. US telcos are falling as a whole. Also, in Canada there could be the launch of a wireless service without launching a network. And Rogers owns a big stake in CCA, so will Rogers delever following the Shaw deal? These are three overhands that have pressured shares. He prefers CCA's larger peers. Also, telecoms remain weakness.

Extremely compelling on stock price and valuation. You'll probably do OK if you buy now, but lots of overhangs. Intense competition for broadband in US, losing subscribers. Growth is anemic. Debating whether to roll out wireless. Clouds on horizon.

Not a high multiple. Increase in subscriptions. Tailwinds as they build out their network. US side has some issues, and these need to be sorted. Canadian part has done well. Owning here won't hurt you. Yield is 4.6%.

Cheap, nice dividend. Lots of competition from BCE with the fibre to home rollout, and from US markets. Doesn't see growth. Rogers is cheap and has been ignored, so that's the one to go to, followed by Telus.

It enjoyed a bump with the Rogers-Shaw deal greenlight. The last 6 months have seen 3 short-lived uptrends, but an overall downtrend since January. This needs to show an uptrend, or else it'll go sideways.

Prefers Quebecor. They rejected an approach from shareholder Rogers, so it's unclear what Cogeco's long-term future. Is overlooked by Bay Street. Has lagged the TSX the past decade. Pays a decent 4% yield. But they lack wireless and entertainment unlike its peers. And they're not in the major Canadian markets.

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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Their latest quarter results were good. They beat expectations on revenue and EPS. REvenue was up 8% and free cash flow rose 14.2%. No concerns around the earnings report. Unlock Premium - Try 5i Free

(A Top Pick Jun 28/17, Down 16%) It was a disappointment. It has a reasonable combination of price, price momentum and he sold it. It still has good return on equity but it missed on earnings due to a problem with integrating a new SAP system. There is always a chance that Rogers takes them in.

This is a sector they are not attracted to presently. There is slow growth in the sector and they hold a fairly high level of debt. In a rising interest rate environment it could create headwinds.