Shaw Communication (B) (SJR.B.TO)

This is looking pretty attractive.

He has no problem with them here. He feels you have taken a lot of the risk out of the market because now you don’t worry about a fourth player coming in from another country. The risk is that the way in which content gets into the home is changing as people download and so on, but companies have pumped so much into infrastructure that may not get used as much.

He prefers BCE (BCE-T) in the telecom media space in Canada. His view on this company is not as constructive. They don’t have the wireless side. Feels that management pays themselves a lot of money for what they do. BCE has a better platform.

Doesn’t own any communication stocks. With the new government in Ottawa and the things that are going on in the CRTC, he is going to stand back from this area in general. They had a disappointing quarter and the subscriber rate dropped quite precipitously. Doesn’t see them as a very able competitor to the other 3. He would sell.

(Market Call Minute) RCI.B-T needs to buy it first. He doesn’t know if it will put itself up for sale.

It is an interesting time to look at them. They are showing subscriber loss. In the end there will be cord cutting, but people will still need an Internet connection. Maybe Rogers would buy it. It has a nice yield.

Shaw is a good one to own because they are not exposed to the 4^th carrier issue. This is a name with pretty good free cash flow, good dividend and dividend growth. Put money in right about now. He also likes RCI.B-T and is buying that.

Doesn’t think you need to be investing in these companies that have subscribers that can be “cutting the cord” now. It is going to be a very, very tricky business. Be careful. 4.4% dividend yield.

Thinks the cable companies are under considerable pressure. Traditional media needs to reinvent itself. Feels there are other businesses that might be better.

This has never been one of his favourites. He felt the family was always taking too much out of the pot, and it is focused too much perhaps in Western Canada, particularly in BC. Doesn’t think it is competitive with the big guys. Doesn’t see the kind of forward thinking that is required to survive in that area.

Likes this name. They are essentially cable and media for the most part. Exited the wireless space in 2013 and rolled out their Shomi product, which is similar to Netflix. Have also rolled out Hotspots in Western Canada and currently have 30,000 of them. The idea is that if you are a customer, you can use these Hotspots for free. Over time this will start to build an ecosystem for their users. Pays a good dividend. Stock is not cheap, but it is not overvalued either.

(A Top Pick May 7/14. (BNN shows this as a Past Top Pick, but our records show that this stock was not mentioned on that date. Also, BNN did not show any percentage gain for this. ) This stock hit highs a couple of weeks ago. They don’t have the wireless problem that others have. There was some speculation of takeover and valuations in the US. Will likely be a candidate at some point.

The Cdn$ is probably going to go lower. He thinks a 4^th player is going to come in to Canada and going to hurt the Big 3. The money from there is going to have to go somewhere and this company is quite reasonable. They just pulled back from a weaker Q1. Thinks they can grow their EBITDA this year by 5%-7%. Combining out with lower CapX, he sees their free cash flow growing by about 30% through 2017. Also, expects 5% dividend growth. Yield of 4.02%.

We are seeing a pullback in the housing sector which indicates less new telephones being installed. Feels there is an increased risk in this one. He has T-T as his main choice in this area. He would be cautious about SJR.B-T.

Just came out with numbers and missed not only on revenues, but also on their EBITDA. Has never like this one, because he liked the telco side as opposed to cable. Also they don’t have high wireless growth. Their satellite really missed. Internet grew much higher than analysts expected. A good free cash flow business if you are in the telco space and what you want to own, but he has never gravitated to the story. Prefers BCE (BCE-T) and Telus (T-T). If he owned, he would sell.