Rogers Communications (B) (RCI.B.TO)

Great subscriber numbers. It is getting close to what he thinks it should be valued at. Most people don't recognize the value in their sports franchises. It has been stalled out. They have benefits of being part of a great oligopoly.

It provides an attractive dividend yield as do the other large telecom companies. She doesn’t own them, preferring the utilities. All of the Telcos have pulled back, though Rogers has already recovered a bit. They could be interesting at this price to people who are looking for income. Consumption of data is increasing and even though Shaw is entering the space, it does not look as though any of the players wants to be competitive, so prices are not threatened.

(Past Top Pick, June 13, 2017, Up 6%) They pulled back recently after a good Q1. He expects good results for the rest of the year, pushed by wireless momentum and high-speed demand. He believes they can spin out their sports division, so there's room to grow. They have good assets.

All the telecoms have faced headwinds lately and Rogers has not increased its dividend since 2015. There has been a lot going into capital spending on their cellular network. It is too expensive at this time. He holds it, but is not adding.

Morphed itself from a cable company to a mobility company. Over the last number of years it has been subscriber uptake that has driven them. The weakness is on the enterprise side, which T-T is strong in. Generally this one is a utility with reasonable growth at the end of the day. The future has to do with how fast they will deploy 5 G.

The telecom sector has taken a beating he says. It recently tested trend line support successfully. He would continue to hold it, but would not add new money.

He would consider telcos to be interest rate sensitive. He was hoping Rogers would go back to $53.60 to become a buyer. Right now it is over-valued by about 15%. Recent earnings helped pop the stock up, but expects he will get a chance to buy it lower. Yield 3.2%.

He likes the dividend yield of 3.3%. Trading at 8.5 enterprise value over EBITDA down from 11 last July. Boosting their wireless subscribers. They are doing well. With interest rates moving higher some of the Telcos naturally tend to come off. In Canada the three main players have 90% of the market so they don’t have incentive to fight each other and lower prices. Overtime they will do fine.

The decline is probably overdone. 2018 is probably not going to be as robust as 2017. They have higher cap-X and they did not raise their dividend. He models 8% earnings growth. This is a name you can own, possibly through a put. He thinks it will do some heavy lifting over the next 12 months.

(A Top Pick January 5/17, Up 15%) Challenged the last few quarters from competition. Dividend increase this year is unlikely. Instead they will upgrade their system and save money for next year's spectrum auction.

All telcos have corrected recently. May be opportunities to buy in the next little while because of upcoming wireless spectrum hearings. Rogers is merely all right as a stock. He doesn't see much capital appreciation.

Doesn't own it (owns BCE and Telus instead). Rogers is a good, solid company, but has sold off because of interest rate increase jitters and seen to be in a low-growth industry. They've invested a lot, but have made money from the Toronto Blue Jays.

He doesn’t buy stocks based on interest rates or feelings about the market. He buys companies based on fundamentals. Everybody is addicted to cell phones nowadays. The company is doing tremendously well. Showing good growth Valuation is cheap. You have to own this one. You have to own one of the telcos.

Q4 financial results came in a little above, but thinks the market was concerned that they hadn't hiked their dividend. Their wireless additions were not as good as expected, due to the competition. The whole sector has pulled back as a result of higher bond yields. He would buy this at $60.

Chart shows 2017 ending with 2 hills, which worries him. It would indicate 9 months overhead supply, and it is now below that price. The intermediate low is very important, and he would think we have broken below it. If so, this will go even lower.