Rogers Communications (B) (RCI.B-T)

Doesn't own any telecoms, but dusting off the files on some. Not this one. May have bottomed, courtesy of macro economic tailwinds and rate-cutting cycle. Exited the sector due to cutthroat price-war competition. Possible optionality down the road with MLSE as a spinoff like MANU.

He liked their recent report, including guidance projecting revenue growth, EBITDA and free cash flow. They did a deal with MLSE and another equity deal to delever the balance sheet. Patience will pay off, and you will be paid a 4% dividend to wait. Solid growth is ahead.

Remains in a downtrend, and we're seeing it in all telcos. Function of debt load and higher interest rates. Will especially come under pressure if rates go higher next year. Typically, these names clear off some debt and come through the tough period stronger and better than ever. But right now, it's a challenging time. Likely more downside.

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 #3 choice in the space. Fell down his list because it bought the sports assets from BCE, and he wants cashflow from our telcos, not trophy assets.

The whole sector has been under fire from increased competition. Rogers holds a lot of debt. He owns Quebecor and Telus instead; the latter had tamed their debt and generate a lot of free cash. But Rogers keeps buying stuff over and over; will these media assets pay off? He prefers companies with less debt and more cash flow. The jury is out with BCE about sustaining their dividend (are selling assets to pay down their debt). Quebecor is his top pick in telcos: the only one that's made a good return this year, though Telus is a better long-term pick because of their big cash flow that will let them pull various levers. Don't buy Quebcor or the dividend, but for the growth.

Might be looking to add at these prices. Still likes fundamentals going forward. Has proven more resilient than other telcos. 

Telcos disappointed the past year, there's price competition and Rogers swallowed an acquisition. But interest rates are starting to fall and the operating cash flow is only 7x. He still likes it.

It's merely okay with limited upside. But it's fallen to technical support. But Telus broke below its support, so he's worried. Fine balance sheet.

Will continue to own. Rising interest rates were not good for the business. However, falling interest rates will be good for the business. Population growth in Canada good for the business. Trading at cheap valuation. Generating strong free cash flow, with ability to raise dividend. Would recommend holding. 

In a growth phase from buying Shaw, and they really levered up their balance sheet.

Telecom space very hard right now. Interest rates weighing on the business. Regulatory issues not in the companies favor. Paying a strong dividend. Will continue to own. Presenting good value at this price. 

Good company, and likes the space. Does not own shares at this time. Waiting for share price to fall before buying. Expecting a sale on sports assets soon (vertical integration not going well as TV demand falling). If can wait ~5 years, good be a good investment. 

Impressed with execution. #1 in cable and wireless. 5G coast to coast. Stock's dropped along with the others, but forward guidance of 20% on free cashflow is fantastic. Valuation is around 9.5x forward free cashflow. Acquired Shaw, synergies have been realized, took on lots of debt but making strides to reduce it. Yield is 3.7%, very stable.

Its earnings reported last week were in line with expectations although it missed on the media side. They have done their capital expenditures, have consolidated the SHAW assets and are a year ahead of schedule on cost savings. It trades at 6X operating cash flow and more of free cash flow will go to dividend payments. He is not really concerned about there now being 4 players in the wireless space since wireless continues to grow with usage and penetration.             Buy 17  Hold 1  Sell 0

Watching closely. Pattern not great at the moment (falling trend). Would wait if price rises to $60 before buying. Technical trends in favor.