Quebecor Inc (B) (QBR.B-T)

Benefiting from the Freedom Mobile purchase. Able to expand in Ontario and Western Canada without deploying too much capex. Very high ROE and free cashflow, allowing them to lower debt and obtain investment-grade rating on bonds. Aggressively buying back shares. Best-performing telecom stock this year.

He'd buy today, but remember that these are tough businesses over the medium- to long-term. Doesn't mean you have a long-term, high-revenue-growth business.

Telcos have lagged other yield sectors, and this creates an opportunity. He's buying all the telcos. This is his #4 choice in the space, as it has long-term issues in network buildout. 

The traditional players have to keep reinvesting capital to keep up with competitors, who all have the same problem. Only interesting play in the space is QBR.B. No market share, good product offering, and no clients. So any market share it grabs would be a big boost to its business.

Hydro One is too expensive to buy here. QBR.B is in a very challenged space with the 4 well-capitalized players. Whole telecom industry is cheap, QBR.B will work over time, decent dividend.

Gun to the head, he'd pick QBR.B. No gun, putting capital into a dividend stock for 3-5 years, he'd pick neither and put money into MFC instead utilizing the Canadian dividend tax credit.

Sector's out of favour, but good business, oligopoly, very profitable. Much prefers Telus and QBR.B to BCE. Telus has lots of free cashflow coming, will be able to raise dividend significantly over next few years. QBR.B is the fastest-growing telco.

Telus and QBR.B are the 2 best stocks to own in the space. Telus will gush free cashflow, as it's beyond big capex cycle, low payout ratio. QBR.B is in a high-growth phase with Freedom Mobile acquisition, very careful capital allocators.

Are the dominant cable player in Quebec and benefitted a lot from Rogers buying Shaw then having to sell Freedom Mobile at great terms to Quebecor. Also, they bought spectrum cheaply so they can expand into Ontario and western Canada and much lower capex. Generating strong cash flow. Debt will probably get upgraded by year's end. 40% EBITDA margins, the best of the group. Trades at 6.5x EBITA vs. 810x its peers. Telcos remain an oligopoly. Has the most upside in this sector.

Telcos in Canada are in a unique spot. Quebecor has really upped the competitive pressure, positive for the consumer but negative for BCE and Telus. Stay away from those two, and see how things shake out. Prefers RCI.B, with its ability to shave costs from Shaw, or QBR.B.

Good value, whole sector's been in a funk. Got a good price for Freedom Mobile. Good operators. Better growth potential, as they can now operate outside of Quebec. Wants to see capex plans for Western expansion before adding to his position.

Waiting to buy Freedom Mobile, a good transaction that adds diversification. A value play. Deeply discounted compared to other telco names. Continues to buy here.