Stock price when the opinion was issued
Because he considers this to be a utility stock, utility stocks normally do very well in the summertime. Technically it looks very good. Recently broke to a new high. It’s in an upward trend and is outperforming the Canadian market and is above its 20 day moving average. RSIs are positive. A very attractive situation.
There is thinking that this will eventually get swallowed up by one of the larger telcos. The new management has done a fairly good job of restructuring and cutting costs. While you are waiting for it to be taken over, it has a decent dividend, and she doesn’t see anything negative on the horizon. It should do okay in a volatile market.
There are three reasons it is trading below the offer price. You have a time value until it closes; there is the uncertainty of the regulators (3 have to approve this); and it is based on where BCE-T is trading when the deal closes, so you may not get the $40 offer price. He would sell it and let someone else have the uncertainty.
Has cut its dividend about 2 or 3 times since it went public, so it is a company that is not growing. It’s doing its best to maintain its share in Manitoba. A cheap stock, but it wouldn’t fit his metrics for a quality growing dividend.