Hap (Robert) Sneddon FCSI Manitoba Telecom Services MBT-T COMMENT Apr 18, 2016

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.

The dividend should be paid until the deal closes. It looks like the deal is accretive to BCE-T. It has been incredibly well managed.

This is being taken out by BCE (BCE-T), and if you own, you might as well sell at this point.

This got bought by Bell Canada (BCE-T), but it wasn’t a great company as they had a lot of issues. If they had stayed on that path, they would have probably had to cut their dividends. Keep the Bell shares, as it is a great company, has a great dividend and continues to perform well.

Trading at a bit of discount to what BCE had offered for the company. Expects there will be more and more consolidation in this industry. He doesn’t think there is a lot of risk to the deal not being approved.

Bell (BCE-T) is offering $40, but this is currently trading on the market for about $38. This is a good company at a good price, and he hopes that they hold out to get a little bit higher.

Being acquired by Bell Canada (BCE-T). Accept the offer or just take the cash? You might as well wait for the tender offer and get the full price. If you already own BCE, you may not want to take shares, but take the cash instead. At current levels with a 5% yield, BCE is decent.