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

This has a big fat dividend. One of the negatives is that they have a lot of debt. One of the positives is that they have a lot of the great TV programs. He thinks this stock will continue to bounce around in this area. If they cut the dividend, the stock would probably rally, but if not, you would just continue getting your dividend and do nicely. You could probably nibble at this in the $11 range and Sell some in the $14 range.

This bought the media assets from Shaw, and media is going through a lot of changes. Content is important. She is not enticed to go into this space other than her holdings of Disney (DIS-N). 9.6% dividend yield is quite high, at any time it goes above 6%-7%, you have to start looking at the cash flow performance of the company and how sustainable it is for the long-term.

Hold it only for the big yield. Radio is declining and is not a great business to be in. It has held up but he would be nervous if he held it. He would prefer to go elsewhere.

Pays a 9% dividend yield. There is probably no short-term danger of it being cut. It has been at a relatively high yield for quite a while. It is a tough environment for them with a tough set of assets. You can hold it for the dividend, but he would be a little nervous doing that indefinitely. If you do, watch it every quarter to make sure there is no further deterioration.

In the last month all the broadcasters have come down substantially. He thinks they will come out with pretty good results over the next few quarters. There are a lot of cost synergies that they should be able to squeeze out after their Shaw acquisition. Subscriber growth has been seen over the last year. You are getting a nice 8.9% dividend that he feels is safe.

He owns this for the dividend. The company has a lot of debt and a high payout ratio, which is going to limit the upside. It has the right mix of shows that dominates women’s channels, so it has the audience that will probably watch TV the longest, and has an audience that will probably move to other forms of entertainment in the longer-term. He has a target price of $14.50-$15.00, and it is yielding 8.5%. He would average down to the sub-$12 and would trim it at $14-$15. To have a whole bunch of money in this could be dangerous.

They bought assets from Shaw earlier this year. Going forward cost synergies have been taken out, but he wonders where the growth will come from. Last quarter was good, but they need to pay down debt. The 8.2% yield could be questioned if revenue slowed down. We need to see organic revenue growth.

Buy Nov 25^th and sell Feb 18^th. It produces about 6.5%. It has really done not too much this year and it is bumping up against resistance. We want to see a break above $14. It raises some warning signs, but you could apply a bottoming pattern.

On “pick and pay”, if you have 3, 4, 5 members in your family, and they’ve all picked and you’ve paid for the channels, you are basically paying as much as you would for a bundle. Thinks it was overblown. Sold his holdings as the first real leg of the recovery for the company has taken place. If you currently own this, you are waiting for the next chapter of recovery. He’ll come back and visit this later. Thinks the dividend should be cut in half, and put the capital to better use.

A somewhat high risk holding. He holds this in his dividend fund because of its 8% yield. The company is highly levered, but with the recent merger with the Shaw Communications (SJR.B-T) media division, they are well positioned in the media.

Not particularly constructive on this name. Many media, content owners and broadcasters are at risk of being disintermediated as people stop consuming media through traditional channels, and instead go over the top or online. On a total return basis, he would be wary.

He is Short another company in the industry, and is looking at this as an offset. It’s a pretty decent free cash flow generator. Their legacy business in radio is a cash flow machine. The content business is not particularly good in that margins are being ground down by things like Netflix. This has enough interesting media properties outside of just the content, that it is an interesting cash flow vehicle, and is probably worth owning.

(A Top Pick April 21/16. Up 27.83%.) Had felt the fears around “pick and pay” were overdone. This company has done a good job in cleaning the business up and focusing on what they want the company to look like going forward. At this point, they have a lot of work to do to get to the 2^nd stage.

Discretionary stocks tend to have a bias to the fall, and this stock falls into that category. Technically it is looking pretty interesting. Has started to show signs of support at a rising 50 day moving average. Momentum indicators are starting to pick up. It is trying to carve out a Buying pattern, despite the seasonal tendencies which are weighted more towards the fall season.

This is basically in the harvesting business. They have a business model, there is cash flow, they are harvesting that cash flow and giving it to shareholders. The question is, how long will their business model remain viable, and what do they have to do to make the dividend sustainable. The high dividend indicates there is some risk. Traditional media is in a changing phase, and there are going to have to be some changes to make that dividend sustainable. 8.57% dividend yield.