Telus Corp (T.TO)

Cutting jobs and it seems like their wireless is not going as well as it has. Thinks the telcos have had a free lunch on Rogers (RCI.B-T). Rogers had put forward this “share everything” plan, which really seems to be gaining some traction. This was trading at about 19X versus 16X a five-year average. Expensive. You could probably get this cheaper.

The most concentrated telecom in the sector. He continues to buy it for new clients and has been for a long time. There is not much competition in a space where he sees considerable growth. Every day we are doing more and more with our smart phones and so their revenue per user keeps on going up. Penetration in Canada is lower than the US and has quite a lot of room to grow. There is lots of upside to revenue from current users as well as lots of late adopters. They will be able to raise their dividend as in past years.

He was buying today. All the telcos are doing fabulous things these days. This one of the three has the best capital allocation. 3.9% dividend. The only telco that did not get into the content area. He hedges his bets by also owning two others.

(Top Pick Sep 15/14, Up 12.16%) It did what you expect in a down market. Wireless penetration continued to increase. It was a safe place to hide in a tough market.

A stable dividend grower, yielding almost 4%. A little bit of a premium on the price of BCE-T, but well worth it because the growth is better. An 18% return on equity.

The best growth projects and the best wireless growth of the 3 oligopolies in Canada. Have stated they can grow their dividend by about 10% a year, and for a while have been increasing it twice a year. TV business in Alberta has done quite well, and has taken share away from Rogers.

It makes sense if you are a long term investor. They are in the right space. Wireless is growing as we are doing more and more on our phones. The demand is there and their infrastructure is going to expand. He owns all three.

Thinks it has been unfairly punished. This has the best growth profile of the Canadian telcos, and at the same time it has the best track record of returning capital to investors through their buybacks or dividend increases.

This is at a very excessive valuation. When you look at any of the telcos, especially in Canada, they have had huge runs over the last 6 years. This is trading over his model price. Canada is a very hard place to find anything of value.

Bell Canada (BCE-T) or Telus (T-T)? He owns both, and probably a little bit more of BCE. Telcos are sort of a utility and he likes the sector. Dividends are safe and the stocks are easy to buy and sell. A good basis for your portfolio. BCE is probably his favourite, simply because of the better yield.

Hasn’t owned telecoms in a while because of regulatory concerns, but thinks those concerns are being alleviated or receding. She is now taking a 2^nd look at the sector. This is a defensive, high quality telecom stock and is one that she would choose. You could start buying this here.

He owns three of the Telcos. T-T has good management and can compete well with BCE-T. It has been under pressure because of their Western Canadian exposure. Still they are okay. They are a good growth company. It is a good long term hold.

Telecoms? He would look at BCE (BCE-T) or Telus (T-T), but not at Rogers (RCI.B-T). The CRTC has given a bit of breathing room here. They are probably going to push through a 4^th carrier, but have probably kicked it down for a year or 2. Both names are very investable at these levels. They continue to benefit from gaining share at the high-end and healthy ARPU growth. Strong revenue growth, which is allowing them to be aggressive on retaining customers.

Stock vs. Stock. BCE-T vs. T-T. BCE-T has a fair market value of $61. It if hits that again it will set back. T-T is the same. It is in a rising phase right now, but is not the exciting value for you to make it half your portfolio.

He owns some, but thinks you basically should move on. You will have better total return in the US in the financials, regional banks especially.