Quebecor Inc (B) (QBR.B.TO)

Highly ranked in the "green zone" of Canadian RSI stocks. By far, the best performer in its sector. Trending up, remains in an uptrend. RSI is strong.

Likes it for buying Freedom Mobile, the low-cost mobile carrier. In contrast, Rogers has limited growth. QBR is taking market share from Rogers. Because of a regulation change, Freedom users now have far better coverage outside their core areas across Canada. He prefers Quebecor because of Freedom.

(Note the short timeframe.)  Of all the telcos, actually gaining market share with Freedom Mobile. The chart tells the story. Will eventually run out of steam, but not quite yet. The best in the space.

They are eating away at the bigger companies. Is efficient. Has a long term view.

This year, money has rotated from telcos to cable companies like this one. Telcos' capex winding down, cable companies now need to spend to upgrade. Telecoms are much cheaper and probably due for some sort of mean reversion. Be very cautious.

The only telecom that's growing. Freedom Mobile gaining a ton of market share. He's seeing a target price of ~$70 in next few years. Yield is 2.69%.

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.