Stockchase Opinions

John Sinkins, CFASBC CommunicationsSBCPAST TOP PICKMay 14, 2003

(Was a top pick on Mar 31/03. Up 22%) Still likes. Good local assets. Still some upside left.
$24.66

Stock price when the opinion was issued

Telecommunications
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DON'T BUY
Like BCE (BCE-T) in that it just crawls along. Thinks it pays a high yield, but at the end of the day it is above what he thinks is its fair value. His model price is $23.26. A 4% differential. However, the model price has gone up in the last 2 months.
HOLD
About a 5% yield. Telco's are finding it hard to make money, so stocks have not grown much. Will be a survivor.
TOP PICK
A yield play. 5.1% gives you 10% return.
DON'T BUY
Good dividend Stock. Expect the wireline communications companies are going to go through a few rough periods. Doesn't expect much growth.
BUY
3 good reasons to buy are strong dividends, coming off the bottom, and US currency devaluation. Had been oversold. Very steady revenues. Limited growth.
DON'T BUY
Has a good dividend yield. Fair market value is below the present price. Could drop to $19/20.
PAST TOP PICK
(A top pick July 28/03. Down 5%.) Big cap telco is the one area that hasn't moved. Trading at 10 X next year's earnings. 4.7% dividend. Still likes.
DON'T BUY
Generates tremendous amounts of free cash flow.Prefers Verizon.
TOP PICK
4% dividends. A solid company. Creating a lot of cash flow.
WEAK BUY
Phone companies are suffering from competition. Revenue growth is meager, but has a nice dividend.
TOP PICK
Just had a dividend increase. Yields about 6% Solid business.
BUY
HOLD
One of the best regional Bells in the US. No debt problems. Being hit by business slowdown.
DON'T BUY
Wait to see a turn around in the telecom sector.