Telus Corp (T.TO)

Great company. Likes them very much for their growth potential in Western Canada. You could probably tuck this stock away and it should do well for the next few years. Raising their dividend. Just had a great quarter.

He doesn’t own any telcos right now, but if he did he thinks this one has a really good opportunity to do well. Decent dividend. Good growth profile. Stock has done extremely well for the last 3-4 years. For people who want yields, these telcos are pretty interesting, because they have an oligopoly and yields are quite safe. This company has increased their dividend quite a bit.

Has had an extraordinary run. Wireless revenues were great growing by 5% last quarter. Had a little bit of wireline trouble but he still expects good things through to 2015. Really not cheap at these levels. His target is $40. If you hold, you might want to think about selling some Calls.

Telus (T-T) or BCE (BCE-T) for the next 3-5 years? Of these 2, he would prefer BCE, which has the media side, including BNN giving them and little bit of diversification. Also, feels they have a little bit more growth on the wireless side.

(A Top Pick Nov 15/12. Up 18.94%.) Had a split 2-for-1. The story on this has been remarkably consistent. It understands investors’ appetite for getting a return on capital. Have been very clear about their 10% dividend growth and have given guidance of 3 years. Have lots of stock to buy on share buybacks. Very stable business.

Nice bounce back up. Telecom sector in Canada is quite competitive. However there are still some regulatory issues. This would be the Telco to own.

Governments are going to be targeting that sector for the next few years. Bought Rogers on the Verizon news and sold last week. Short term, he took money off the table. This one should pull back also. It is a bit overbought here. Take money off the table here for traders.

Exceptionally well managed company. Last quarter, revenues per subscriber didn’t meet expectations, but did a little bit better on their wireline service. This is a highly competitive market and getting more competitive as the major players roll out across Canada. On a valuation basis, it looks a little too expensive for him.

Concerned about regulatory risk with all telecoms. He sold some time ago because of competitive reasons. The government has given a clear signal that they want to give consumers a break.

Telecom Policy. Does not know what’s happening in terms of government policy. He is glad the US guys decided not to come to Canada. Thinks there is more room to recover.

In a sweet spot like BCE. Does not have content or media side but that could be a positive as well. Very shareholder friendly. Company is buying back shares and invested in infrastructure. A definite buy and has not recovered fully from the corrections from yield stock and Verizon stories.

Telcos are going to be subjected to quite a bit of additional competition. People are looking around more and more for TV service. There will be some regulatory pressure. There has been a suggestion that once smart phones hit 70% then things slow down in wireless. This will put a cap on dividend increases. He is watching it. Stay away from the industry but if you are going in, then buy Rogers.

There are no foreign bidders in the spectrum auction. They haven`t moved back as much because of interest rates. The fundamentals for telecom stocks are quite good. If you can buy them cheaper here it is a good opportunity.

Bell Canada (BCE-T) is his favourite, although he does own some of this as well. Well-run company and it will grow with the market. Have done a reasonable job of getting new business and are in areas that have relatively high growth.

All telcos really sold off through the spring and summer, both in the US and Canada. Believes we have seen the lion’s share of the initial move higher in the 10 and 20 year bond rates and that is likely to neutralize over the next little while. Interest sensitives in general will do better over the next little while. He still prefers to own something that gets a little bit of a lift from a better economy, like financials, but for those who are looking for yield, this is pretty attractive. Prefers this over Bell Canada (BCE-T) as this has a little bit better internal growth and will buy back shares and give you dividend increases of 10% a year for the next 3 years.