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

(A Top Pick May 7/14. Up 4.3%.) Doing what they said they would do. They were kind of lagging in their customer service side and are fixing that. Increasing their dividend. Still a good company.

Sees a dividend coming in February and the NAV worth somewhere between $55 and $60 a share. He can’t believe that the valuation of their wireless is worth less than Telus (T-T), and given that this company has cable assets, Shomi and their interest in Maple Leaf sports, along with the biggest cell tower network and real estate. Altogether calculates $55-$60 a share in value. Doesn’t think there will be explosive growth, but it is undervalued.

Currently doesn’t have much exposure in the telecom market. Both Telus (T-T) and Bell (BCE-T) from his point of view are better positioned right now. This company has been concentrating on reorienting their company to being customer focused and realigning their management areas. A lot of their delivery depends on coaxial cable, whereas Bell has forged ahead with a lot of fibre optic and can deliver greater capacity and higher quality picture. Doesn’t think the current business model is competitive.

In the telecom space, Telus (T-T) is actually doing the best of the 3 big players. This one is a mature business model, generating a lot of cash flow and very cognizant about buying back stock and increasing its dividend. This is a place for people to hide and get a decent yield. Despite her regulatory concerns, these companies kind of operate in an oligopoly within Canada, and are all doing relatively well in terms of cutting costs and getting cash flow.

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.