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

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.

Freedom Mobile will be a good purchase so it will diversify the business away from legacy cable into mobile phones, and the deal will be approved after a long wait. They're underexposed to wireless, which is why this trades at a lower PE vs. peers.

Dramatically lower valuation than peers. Likely to benefit from Rogers-Shaw merger, as it'll pick up assets at a pretty good price. Short term positives. But long term, just doesn't have the scale, or ambition, to compete nationally.

He owns BCE and Telus instead for income. At this point in the cycle, and just looking at total return, he wouldn't own any telcos. Better opportunities elsewhere for capital gains in the value and cyclical areas. Not a pure play telco. Not the biggest or most diversified. Commends what they're doing with the business.