Telus Corp (T.TO)

He doesn’t have too much of a position in telecommunications. Going from the 3-year to the 2-year contracts has made it more expensive, and he thinks people are holding on to their phones a little longer. Also, when they do issue new phones, they now have to amortize them over a shorter period of time to recoup their costs. Revenues per person are being squeezed a little. Very competitive market. With the government wanting a 4^th national competitor, that could really affect the market to some extent too. Too many uncertainties.

(A Top Pick July 10/13. Up 25.86%.) 4% yield, and the expected dividend growth is quite high. Still likes and it would be a Buy at this time.

Has not owned telecom for the last couple of years. Would not be buying it here. The regulators really want to encourage competition. You buy telecom for the yield and steady cash flow but you can go elsewhere without the regulatory risk. A slow growth mature business.

Telecom sector went through some upheaval when the CRTC said that 4 competitors were needed in the marketplace. That really put a squash on the big run that all the stocks had. Momentum is slowing down for telecoms, and this has hurt this company for the last 12 months.

(Market Call Minute.) He is looking at this. Big blue chip and meets his criteria.

The most expensive name in the group, but good quality and no question of dividend being paid. Would not aggressively add at this point.

Doesn’t have any fundamental value. Closed at $41.22, and his model price is $34.56, a negative 16%.

Long Telus Corp 4.40% 4/2043 bonds and Short Gov’t Of Canada 4.00% 6/2041 bonds. Telus is number 1 in their space, great management team, building subscriber base. Bond trading at $0.95 is very unique. It is very unique. The short is an interest rate hedge.

(Market Call Minute.) About to report and will probably be okay. Feels telecoms are only a hold for yield. They are running out of growth and there are a lot of headwinds.

(Market Call Minute) Long time holding and he would continue to buy. 10% dividend growth.

There is a fight on the take out of Mobilicity. He doesn’t see the sector doing anything for now.

Of the telcos, this is the one he likes. Geographically it is in an area of the country that is strongest. Doesn’t think the foreign competition is going to happen. Had a big run and doesn’t know that it has huge upside but doesn’t feel you are greatly at risk if you continue to hold. 3.7% yield. There are other sectors that are going to grow a little faster.

One of the big Canadian telephone companies. Of course these days they are diversifying into IT TV wireless. Just reported and numbers were well in line despite the competitive threat from new entrants. Well-run company, especially for dividend investors. However, the whole industry is under a little bit of cloud right now with respect to how the regulatory regime will evolve for the wireless business.

Quite comfortable with the dividend growth profile and feels it has the strongest of all the telcos. Have targeted 10% growth on their dividends over the next couple of years. Of the telcos, this is a better positioned one because of their geography, West Coast where there are stronger population demographics, which bodes well. They are very good at customer service.

Telcos were an absolute slam-dunk, screaming, no-brainer Buy when everybody was worried about Verizon. This one is more fully valued than the rest of the names. With new cash, he would be buying Rogers (RCI.B-T) or Bell Canada (BCE-T). If this one pulled back to $30, he would be in there.