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

It pays a nice dividend. It is attempting to merge with the fourth player, Shaw. They are an essential utility. They have mildly good growth prospects for them. It would be a solid dividend investment. They are the backbone of the network we use for work-from-home.

(A Top Pick Oct 13/20, Up 21%) He would buy it again and still owns it. He is disappointed in the telecom carriers in general. Also people are worried about the debt they took in to buy Shaw. They are a long term infrastructure asset. He thinks this is a bargain that is not recognized.

Big fan of telecoms, though they didn't deliver last year as expected. Telecoms are very defensive and operate in an oligopoly. RCI is OK, but not as keen on it compared to others in the space. Least enthusiastic about cable. Ton of risk on the Shaw deal.

He thinks there is a good chance the acquisition of Shaw will go through. They could increase their dividend over time. It is a long duration asset. He likes the sector in general. (Analysts’ price target is $70.73)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. They have finally gotten Shaw with a very large premium. A big deal at $26B. Regulators will surely be looking at this closely. Shares may come under pressure but they claim $1B in synergies and it should make a successful merger if the regulators allow this. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company missed estimates. The pandemic was responsible for severe reduction in roaming fees. EPS beat estimates but average revenue per user fell by 9%. Professional sports that are also less active is a factor. 10% growth is still expected and the problems are largely not the company’s fault. Unlock Premium - Try 5i Free

He's held this for 30 years. Investors underestimate their infrastructure assets in their networks built-out. The stock is cheap now. They benefit from heavy streaming now. They generate good cash flow and a cheap valuation. (He also own BCE, Telus and Shaw.) Rogers' advantage as that it trades at a similar valuation, but pays the lowest dividend in the group, which means they can increase their dividend in the future. True, he's been disappointed in their performance this year, but it's a buying opportunity now. (Analysts’ price target is $63.64)

(A Top Pick Oct 18/19, Down 11%) Disappointing short-term. Growth, reasonable valuation, free cash, dividend. Still a decent growth story. Great assets, especially if the Cogeco deal goes through.