Manitoba Telecom Services (MBT.TO)

Technically it has a nice bottom after being beaten up for a couple of reasons and there could be a good bounce over the next 12 months. 10% and nice dividend over the next year.

Quite interesting now after the share price dropped off following the Allstream rejection by the government. Stock got punished and now is sitting there with a 6% yield that is very sustainable. Business base in Manitoba is very stable with very little competition. Not a lot of growth, but not a lot of decline either.

Chart shows the trend is down. Relative Strength is negative. Trading below its 20 day moving average. The technical score for this one is zero, so you don’t want to be there.

They weren’t able to get rid of Allstream, which was a pity. Doesn’t see this company going anywhere very quickly. Believes that the 5.86% dividend is safe.

Did a share issue because the Allstream issue didn’t go through. Have a pension liability problem, which they are now taking care of. They are doing the right things. Their major challenge is that they are in a very low growth environment. Dividend is safe and the yield is attractive. 5.9% yield.

A bit of a train wreck. Everybody was getting out. They are probably going to have to do an equity raise due to the pension liability. He has upgraded this in that the management’s guidance was actually better on Q3 than what they expected. Thinks you are going to get paid on this one. He has a $33 target.

Has been disappointing as compared to its peers. Has been an underperformer. Had a low of around $26 in 2010. As long as it doesn’t make a new low, you are probably okay. 5.7% yield. Don’t let it make a new low. He would be careful.

Usually in September, telcos do well. This one had a major breakdown recently, which was all news driven. It is now at the same level that it was in late 2011. There is a little bit of a base pattern here and it is going to get very difficult to get past the $32 level. Safe play, but doesn’t see it being a big gangbusters. Healthy dividend.

Move on. They are constrained by the All-Stream thing. Any bids will be lower. 5.9% dividend, but don’t wait around to see if anything happens.

Very little growth prospects. It is down but you only want something down if it will recover. Prefers BCE-T and T-T.

Would probably continue to hold this for the yield. He doesn’t see a risk of them necessarily cutting the dividend. There is no growth. Ultimately, they will be selling Allstream as there is some value there. 5.8% dividend yield.

This company is in a tough bind. Have a big pension liability. Feels their dividend is at a real risk. If you own, be prepared for more pain. In a very competitive space.

Similar to a BA-T. A slower growth story. It popped when they sold off allstream and now it is almost back to where it was. It was a traders` play during that time. It is where it should be given the fundamentals. You could start to see dividends increases from the smaller company. It is possible that a major takes them out at some point. Not a growth story, however.

A good section of his portfolios are in telcos. This hurt when Verizon (VZ-N) rumours came but he added to some of his positions at that time. He is quite happy with the dividends. This one has a good business. Took a big jump up when they sold the fibre-optic side. Took some profits at that time. Excellent yield and dividends are safe.

Manitoba Tel (MBT-T) or Telus (T-T)? The market has now changed a little bit in its outlook since interest rates have started to rise. On the equity side, you can’t just buy something for yield anymore because the stock price might go down because we need a higher yield to price the stock in a higher interest rate environment. Therefore, you need yield plus growth. Today, Telus has better growth than Manitoba Tel.