Telus Corp (T.TO)

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.

Telcos as a group have probably weathered this correction rather well. They all provide a good yield. Wait for a pullback before initializing a position. She doesn’t own any telecoms stocks as it is a fairly competitive market.

Either Bell Canada (BCE-T) or Telus (T-T) are great buys as they are both catching up to Rogers (RCI.B-T). This is one of the best managed companies in Canada. CEO is still taking his salary in the form of stock. Very focused on customer service, growing the bottom line and increasing the dividend, once or even twice a year. There is a lot of upside and a little less competition in Western Canada on the wireless side. Gaining a lot of market share on the television side from Shaw (SJR.B-T).

(Market Call Minute.) Feels this is the best of its peers in Canada. Have the most free cash flow and the ability to return cash to shareholders. Likes to buy this on dips and sell closer to $38.

(Top Pick Nov 15/12, Up 21.40% Total Return) He reduced his exposure to telcos but this one was the strongest. They will continue to do well. Shareholder friendly management group.

There was a lot of angst about a foreign entrant that really hit the stock. Another headwind with telecoms is the rate environment that is conversely, so good for banks and lifecos, but not so good for telcos. You have a macro environment that is hostile for telecoms but, underneath, this company is still growing their wireless customer base and it doesn’t look like a foreign entrant is coming in. She finds better uses for her money.