Corus Entertainment (B) (CJR.B.TO)

(Top Pick Apr 27/15, Down 30.83%) He thinks the market will be surprised by the success of the acquisition. There will be the cost and revenue synergies exceeding guidance. The dividend is 10% and totally safe.

SJR.B-T vs. CJR.B-T. He wants to buy a good company when it is relatively cheap. Technically there is some relative value to both.

(Market Call Minute.) Pick and pay is not going to be as bad as had been expected.

It has been a tough place to be. Pick and Play has put downside pressure on companies like this. He thinks it is a little overdone. These guys are smart and working closely with cable providers. In the end he feels it will be more expensive to pick and pay for individual channels. 10% dividend.

We had a breakdown in late 2014. You would like to see it break above the top line of the downward channel. If it violates the base, then it probably has another leg down.

If he owned this, he would sell it. This is the Torstar of radio. The radio business is in decline, which you can see in their numbers of having 12 to 14 quarters in a row that radio is down. They’re okay for now, but if that trend keeps happening, then the 10% plus dividend will eventually be brought into question.

They are buying Shaw’s media assets. The broadcasting sector is going through so much change right now that there are other places you can go for more visibility over what will happen over the next few years. The dividend is high and the market is questioning whether it is sustainable.

It has been a tough place to be. Pick and pay is going to come out and the market is trying to understand the implications. They capture higher ad dollars because of the specialty channels. Now they can see what the subscriber base is per channel vs. the package. It has a potential of a meaningful upside, however. 12% dividend makes him concerned. The cash flows look pretty good and have not changed since the share price was higher.

If you drew a magic line on the chart, his strategy would be “prayer”. The chart shows no support. He hates it when a stock breaks double digits. If it were him, he would be out of this name.

He loaded up the truck last week. It is ridiculously cheap. They are going to launch a lot of content and increase their subscriber base as well. He predicts a turnaround next year and feels the dividend is really safe.

Part of the down trend is the weaker advertising in traditional media, especially children’s and woman’s media as well as radio. They had to pay a lot for exclusive rights to Disney advertising in Canada. It is cheap and there is talk the Shaw family might want to buy the rest of it. The dividend is solid for 16-17 months and then it depends on what consumers want to watch and what they want to pay for it.

This has been in a pretty significant downtrend from the fall of 2014. Right now there is nothing. The risk/reward is really good, but you have to be disciplined on how much further you are going to let it go.

This space is changing in terms of dynamics, but she thinks the dividend is safe, but it is really a question of going for future growth. How they are going to grow their asset base given the different ways that people are now viewing television and media. All media companies are having to deal with this. Not really attracted to this industry, at least in Canada. Dividend yield of 11.5% which is signalling that there could be some potential safety concerns going forward.

Always has trouble with these types of companies. The dividend is attractive, but the business is in decline. The stock has been beaten down pretty significantly and there is probably a future to their business, but not one that he can reconcile with long-term growth and the dividend at these levels. He would steer clear of this.

(A Top Pick Sept 16/14. Down 45.96%.) Down because the CRTC said you’re able to “pick and pay”. Therefore the landscape for the cable companies has changed. It’s the content you are going to want to keep because it is children. They are reporting bad numbers because they have been writing down the value of the radio stations, plus the advertising market has been soft. He still recommends this. Dividend yield of 9%.