Opinions John Zechner
Quebecor Inc (B)QBR.B.TOPAST TOP PICKNov 21, 2014
John ZechnerStock price when the opinion was issued
As of Jun 09, 2026. Market Open.
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(Note the short timeframe.) Of all the telcos, actually gaining market share with Freedom Mobile. The chart tells the story. Will eventually run out of steam, but not quite yet. The best in the space.
Tim ReganThey are eating away at the bigger companies. Is efficient. Has a long term view.
Tim Regan
The only telecom that's growing. Freedom Mobile gaining a ton of market share. He's seeing a target price of ~$70 in next few years. Yield is 2.69%.
(Analysts’ price target is $51.29)Tim ReganBenefiting from the Freedom Mobile purchase. Able to expand in Ontario and Western Canada without deploying too much capex. Very high ROE and free cashflow, allowing them to lower debt and obtain investment-grade rating on bonds. Aggressively buying back shares. Best-performing telecom stock this year.
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Premium contentOur PAST TOP PICK with QBR.B has triggered its stop at $33. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 11%, when combined with our previous guidance.
Premium contentHe'd buy today, but remember that these are tough businesses over the medium- to long-term. Doesn't mean you have a long-term, high-revenue-growth business.
Telcos have lagged other yield sectors, and this creates an opportunity. He's buying all the telcos. This is his #4 choice in the space, as it has long-term issues in network buildout.
The traditional players have to keep reinvesting capital to keep up with competitors, who all have the same problem. Only interesting play in the space is QBR.B. No market share, good product offering, and no clients. So any market share it grabs would be a big boost to its business.
Premium contentHydro One is too expensive to buy here. QBR.B is in a very challenged space with the 4 well-capitalized players. Whole telecom industry is cheap, QBR.B will work over time, decent dividend.
Gun to the head, he'd pick QBR.B. No gun, putting capital into a dividend stock for 3-5 years, he'd pick neither and put money into MFC instead utilizing the Canadian dividend tax credit.
Premium contentWe reiterate this disruptive source in the telecommunications space in Canada as a TOP PICK. Management announced it has met all the commitments required to complete the acquisition of Freedom Mobile, which will position it well for expanding 5G in eastern Canada. We like that cash reserves are growing, while debt is retired. It trades at 10x earnings and supports a 39% ROE. Its dividend is backed by a payout ratio under 50% of cash flow. We recommend maintaining the stop at $25, looking to achieve $37 -- upside potential of 25%. Yield 4.2%
(Analysts’ price target is $37.25)Premium contentQBR.B is a disruptive source in the telecommunications space in Canada. It's recent acquisition of Freedom Mobile for $2.8 billion positions it well for expanding 5G in eastern Canada. Recently reported earnings showed a 19% increase in earnings. Cash reserves are growing, while debt is retired. It trades at 10x earnings and supports a 39% ROE. Its dividend is backed by a payout ratio under 50% of cash flow. We recommend a setting a stop-loss at $25, looking to achieve $37 -- upside potential of 25%. Yield 4.2%
(Analysts’ price target is $37.33)
(A Top Pick Feb 10/14. Up 26.46%.) The de facto 4th player in the telecom area. He doesn’t own this for the publishing assets, but getting it for what it is going to be doing in wireless. It was cheaper than the rest of the group and had better growth potential.