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

This got over levered compared to the others and decided earlier this year that it was not going to raise its dividend until it gets its debt down. Investors have not liked that. Doesn’t think investor psychology will change until they start raising the dividend again. There is also a question as to whether they overpaid for NHL rights. In the short term, the answer is “Yes”.

(Market Call Minute.) The cable space has been tough. This one is going through major changes. If you are going to buy telecom or cable, he would probably own BCE (BCE-T) or AT&T (T-N).

They have some issues that they have to work out in the longer-term. The Internet is having a major effect on a great deal of their business, particularly their cable, television and home phones. Good dividend yield of 3.8%.

Telus (T-T) Bell (BCE-T) or Rogers (RCI.B-T)? He owns BCE which he likes. This one has more difficult issues with the cable side. People are worried that they paid a lot for the NHL business. Also there is concern about people cutting the cord on certain channels.

Has slipped back off its highs a little. Thinks they got adverse press about the NHL hockey contract, with no Canadian teams in the playoffs. They have done a great job on the customer complaint side. It is a fight for every customer, but they seem to be winning their share these days. Reasonable valuation and has a good yield.

Hasn’t performed super well, but it’s okay. It’s a defensive component in his portfolio. This is a name you can hold, and should be part of your portfolio. Holds it for the defensive characteristics and its dividend.

RCI.B vs. T-T. There is probably more growth potential in T-T, but there is less diversification. He prefers T-T. He expects the relative outperformance to continue.

(Top Pick Oct 6/15, Up 10.56%) He picked a strong stock in a safe sector. It is clearly running ahead. The yield is good. It is an outperformer. He is going to stay with it until the price breaks down.

BCE-T vs. RCI.B-T. He has owned BCE-T for a long time. They grow the dividend, but Rogers is not going to do so in favour of paying down debt.

Likes the telecom space, and this one leads the pack for him right now. The only one he owns. Have really leveraged their cable and media assets and have distributed the content to their mobile users and wireless subscribers. Have increased the average revenue per account. Dividend yield of 3.85%.

Had looked pretty good and was benefiting from flows coming out of energy, materials, etc. that weren’t doing so well. Got a little bit frothy, so he didn’t Buy. It is back to a point now, $45-$48, where it is probably a good buy. It might stay in this range for a while. Good dividend growth. Thinks Wind mobile and Shaw (SJR.B-T) will take customers away.

(A Top Pick Oct 6/15. Up 11.88%.) Got interested in this because it was breaking out along with its peers. Continue to Hold.

(Market Call Minute.) One of 2 telcos he would like; however his preference is to steer clear of the telco sector. He thinks Shaw (SJR.B-T) will get bought out by this company, so that might be a better option for you.

Has done very well, however the stock is trading at very, very overbought levels from a relative strength standpoint. Today it was trading at 83 RSI, and anything above a 70 is way overbought. Not a stock he would enter into. A lot of Canadian telecoms are expensive at this point.

The telecoms are getting a little rich. This one has had a very nice move. Had a lot of problems with subscriber losses and high marketing costs on the retention of subscribers, but it seems that since the new CEO came in, those metrics seem to be improving quarter by quarter. Just recently announced another strong quarter and better numbers, and less subscriber loss. On a multiple basis it is trading less than Telus (T-T) or BCE (BCE-T). This is still a good bet to keep paying their dividend and growing as well.