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

Don’t let that high yield seduce you into buying the name. We have seen that with the cutting of the dividend. They had a challenging ride. There was a lot of stability at ten dollars but then it fell to $4. The market cannot tell what the outlook is for the next 4 years.

He has owned it in the past. It is once again at the mercy of its industry. It is fighting against a big tide. It has come off quite a bit. It could be an interesting candidate but you have to know what the content is worth in the industry. It is more of a global thing. It could be worth looking at.

They are not in this space due to changing demographics – he watches cable, but not his kids. This whole sector will face increasing competitive pressure from the likes of Amazon Prime and online streaming.

Optimal holding period is from November 6 to February 8. Technically, we have some problems. Gapping lower. Looking for selling exhaustion. Hope for capitulation with high volume, that’s an opportune time to buy as a contrarian play. Yield is 30%.

He shorts companies that show a downward trend. This company has been going down for quite a while. The business model for independent channels has been difficult and he doesn’t see a reason for that to change soon. They did a big dividend cut. Tax loss season is coming which will put further downward pressure on the stock.

Quality and sustainability metrics are problematic. You need underlying growth to pay the dividend. Highly speculative buy here, some value could be unlocked. But it won’t come back quickly. (Analysts’ price target is $6.03.)

Currently a 29% yield. Have to be very careful. Should stay clear of it. Talk on the street that it is on the selling block.

Corus Entertainment(CJR/B-T) or Crescent Point Energy(CPG-T). Run don’t walk away from Corus Entertainment. Is a declining business. They own media assets. They have slashed their dividend. There is a governance issue. Going to be hard to get out of this secular decline that they are in. He would sell it. Crescent Point Energy: Some activists involved in this one. The tailwind for this is the rising oil prices. Time on your side on this one. Would be less concerned about this stock versus Corus.

When you get a 28% yield you have to be careful. They cut the dividend. The balance sheet has been falling from the last 5 years and then a sharper plunge with some write-offs. There is nothing wrong with the balance sheet. He thinks it would be a very interesting speculation.

The media sector is so competitive. They have a good network of radio stations as well. They cut the dividend by 60% a few weeks ago. The CEO is doing all the right things by selling off some assets. If you have longer term target and believe management can de-leverage itself, it may be a speculative buy.