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

When the dividend was cut, it was expected by the market. From here, one needs to consider the cash position of the company and advertising revenues. The company is not going away, but he sees better opportunities elsewhere. It might be a takeover target, but he does not who would step up. No buys on the street consensus. Yield 3%.

The dividend was cut today, which he thinks is positive. He wonders how safe cash flow is going forward and is having a hard time pinpointing what their business strategy is. He would be cautious having the dividend be the reason to buy this stock. He is staying away.

Pays a high 17.5% dividend, so there will be a serious cut. He hasn't owned this in a long while. Media is changing a lot. Shaw owns a big chunk of this company and wants to sell it. The share should be lower than the current price.

A troubled stock that's disappointed investors. Whenever there's good news, like possibly selling two channels in Quebec to BCE, it disappoints. It also has credit and leverage issues. The dividend may be unstable.

They own all these great TV programs, but advertisers now are demanding lower rates. Corus also has a lot of debt from the Shaw merger. This stock will struggle to hit $10. Because of the high dividend, you'll recoup your investment
eventually. The street says this company will disappear in 10 years.

This is a speculative stock right now. If the price can build a base then it would be encouraging. It has a rough balance sheet right now, so he needs to see some supportive price action first. He would stay away from this right now. The high yield suggests the market expects a dividend cut anytime. Yield 17.1%.

Why it dropped so much? Should continue to hold it? If you bought it for a specific reason, and that reason doesn’t happen that is when you exit the name. This is a disappointing stock. Dividend Yield of 17% probably will get adjusted soon.

He thinks it is a risky stock with non-investment grade credit, which could also have corporate governance issues. Being controlled by the Shaw family this may have compounded issues. It is a difficult space to compete as well and he does not see this as a growth sector. They are paying out more than cash flow in dividends suggesting the dividend is at risk. He would sell this pronto.

19% yield. The street expects a cut here. Change in the media business is affecting them as an old-time media business. They look cheap now. Hasn’t done a lot of work on this name. There is risk here.

(A Top Pick March 22, 2017. Down 39.61%). He has concerns about ad revenue. He hoped that after its merger with Shaw Media, it would have the clout to improve its advertising business. It did improve for a couple of quarters, but the advertising market has been shrinking faster than its share of the market has been rising. Ad revenues were disappointing last quarter. After meeting with management, he sold half of its shares.

He sees this as a disaster, so don’t buy for the dividend. The market is questioning the balance sheet of this company. The 15% dividend will not last and they should have cut the dividend last quarter. This is not a stock for dividend investors. Yield 15%.

Advertising on the television side continues to be very tough. They are definitely over-distributing on the dividend side. They yield is 12 or 14% but they are paying more than they are earning.

He does not like this name – run for the hills, he says. He expects the dividend to be cut soon. Look for more bad news ahead. He says this is Netflix, Amazon Prime all eating into their market. Yield 14%.

He still has questions about the debt levels. You are seeing more competition in delivery. He does not see where you get the growth.

Corus came out with bad numbers a couple of weeks ago and the industry is facing disruption he feels. TV advertising revenue is down and radio is not growing. Would wait to buy at 5 times EV to EBIDA, whereas it trades at 7 times. The high yield is telling him something has to give—likely distributions. Yield 14 %. (Analysts’ price target is $8).