Quebecor Inc (B) (QBR.B.TO)

Long Videotron 5.625% 6.2025 Bond and Short Gov’t of Canada 1.50% 6/2023 Bond. (Top Pick May 15/14, Up 2.77% / Down 2.03%) Triple ‘B’ company. If government convinces them to be the 4^th national carrier, their wireless will have to be standalone entity.

Videotron 7.125% Jan 15, 2020 Bond. Credit metrics of an investment grade bond. They are the cable providers of Quebec. They have to push their profits up to QBR.B-T, but in the case of any insolvency of QBR, Videotron is made whole. The biggest risk is that they would be the 4^th big player out there.

It started to roll over and get soft. $25.22 would be the support. We are at a 16 week low.

Long Videotron 5.625% 6.2025 Bond and Short Gov’t of Canada 1.50% 6/2023 Bond. Gov’t is supporting Videotron as they try to increase competition in the wireless space against Telus and Rogers.

Thought it would have pulled back after the quarter, which was a little bit mixed with weak subscriber numbers. Doesn’t know if this is a great entry point or not, but he likes the stock because it is one of the cheaper media plays in Canada. Wireless play and strong cable in Québec as well as some media business which they are trying to consolidate. Reasonably valued.

(Top Pick May 13’13, Up 19.33%) Still very cheap. He sold and bought another. It had a great run, but you don’t get much of a dividend. It was a return of capital story. They gained market share, which he thought they could do.

This is like a de facto 4^th player in the telecom industry. Government wants a 4^th player but the 4^th players they’ve had have never been big enough to develop. Videotron has over half a million subscribers on the telecom side. Have a very good LTE network. Thinks this can line up as a 4^th player easily. Obviously growing well in the Québec market.

Thinks it does better now because of the Vodafone (VOD-Q) matter allowing utilities and cables to rise again because the Verizon (VZ-N) is over. This company benefits very much by its videotron. (See Top Picks.)

Owns mobile and wireless media. In two years will be able to produce a dividend, which will push the stock to near $70.

Internet and Cable are fine, but news paper disturbs it. It is still good and it ran up and bumped down. He has some of the bonds.

(A Top Pick March 27/12. Up 17.3%.) Sold his holdings a short while back. Was concerned that some of the quarterly results had not come in as strong as he had hoped.

It’s the wireless side that is going to provide a catalyst for the stock. Have cash flow and some growth. Not crazy about cable but thinks the stock is going to move.