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

He prefers Bell Canada
(BCE-T) and Telus (T-T). The whole space in Canada is very confusing, but potentially challenging. There are 3 big players. Are there going to be new ones? He looks at this through content. The landscape in terms of telecommunication is changing so much with the content delivery. It is how you deliver what you own, or what you don't own to consumers. In Canada, all 3 companies are delivering wireless services. Feels the new CEO is positive, but it is like trying to turn a huge ship around, which could take some time.

She hasn't owned a telecom for the last 1.5 years. It feels like the Canadian regulator wants more competition in the space. Of the 3 major telcos, this is the one that has not been doing as well.

Reasonably attractive down at these levels. Has underperformed pretty dramatically over the last year.. Both the other telecoms are up, including dividends, about 10% year to date. Healthy 4.5% yield. Have had some problems. Mostly exposed to the wireless business and have had some management changes. Made a huge bet on hockey with the NHL contract.

One of his favourites. On the NAV, he thinks this is incredibly cheap. Feels there is a lot of hidden value inside the company in terms of the cell towers, real estate it owns and the valuation that it should have for its cable and wireless divisions. Has terrific pricing power. Doesn’t see any chance of their being a 4^th player in the industry meaning good times will continue for these companies.

Would not touch it here. Wants to see the CRTC hearing results regarding unbundling. He would take the loss and move elsewhere.

Felt the competitive environment in the telcos was getting too intense so she doesn’t own any. Sounds like the Canadian government would like a 4^th wireless player, so there are regulatory concerns. This provides a nice yield and generates a lot of cash flow, but even so, she is not looking to enter the space.

They seem to be undergoing a fairly major strategic review. For a long time this was a very steady cable company, but are now facing competition in all kinds of areas. They are pretty much dedicated to coaxial cable and seem to be losing market share to other means of delivery. They look like they are going much more towards buying entertainment/content. People are going to continue to pay for content, but with all the streaming services that are coming out, there is much more competition. He really worries about the long-term outlook for these capital intensive companies.

Had predicted a long time ago this company would fall down to one of his levels, and there it has been for the last 6 weeks. His Model Price is falling because its earnings are falling. At this time it is $43.20 and he has FMV at $35.86, a 17% negative value. It really needs to hold this level here. If it breaks, or is a negative transit, it will go much lower.

(A Top Pick Aug 6/13. Up 7.27%.) He is still positive on this. There are so many assets that the company has, that can add value for shareholders. 4.3% dividend yield.

(A Top Pick June 10/13. Down 2.48%.) Looked like he was getting at quite a good price on a nice setback in the market. Then the CRTC changed the rules, which took away the economics and all the momentum that he might have seen.

Doesn’t like this one today. There is a lot of media attention and chatter around the government wanting a strong 4^th entrant into the wireless business. Because of that, there is going to be competitive pressure on the wireless space. It is a good business and is not expensive and pays a nice dividend.

He can’t understand why the government has an insatiable demand for a 4^th national carrier, which they just don’t seem to be able to produce. Everybody says there is no room for a 4^th carrier. Feels the sports franchises they own are not valued in the price of the stock at all. Feels this is a tremendous buy at this price.

(A Top Pick July 4/13. Up 8.65%.) New CEO recently described the company as “a cold plate of spaghetti that needs to be untangled”. He likes that analogy. He likes to buy stocks when the market has an erroneous reaction.

This company is a complete mess, but there are so many great assets inside the company. There are the publicly traded securities they own. Also, has a terrific sports asset where there is a big value. Thirdly cell towers, a huge business in the US, where they are being spun out for $500,000 each. This company has 6,000 cell towers. Yield of 4.26%.

The telecommunications space is having to deal with a very belligerent government that wants to reduce profitability and encourage competition in a market where the public can’t profitably compete. These companies have been able to sustain their dividends and profitability through increased usage of data. More and more we are hearing that new technology and applications are coming around, enabling consumers to bypass the data packages that the cellular packages big companies are providing.