Cogeco Cable

CCA-T

Analysis and Opinions about CCA-T

Signal
Opinion
Expert
BUY
BUY
November 14, 2019
Some companies you just have to buy when the chart looks like it's not a good time. Price momentum can tell you something good is happening. Getting rid of data business gave them lots of capital to go into the US, where the big story is, exceeding expectations. Buy it here and tuck it away. You'll get dividend growth. Yield is 2%.
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Cogeco Cable (CCA-T)
November 14, 2019
Some companies you just have to buy when the chart looks like it's not a good time. Price momentum can tell you something good is happening. Getting rid of data business gave them lots of capital to go into the US, where the big story is, exceeding expectations. Buy it here and tuck it away. You'll get dividend growth. Yield is 2%.
PAST TOP PICK
PAST TOP PICK
September 17, 2018

(A Top Pick Jun 28/17, Down 16%) It was a disappointment. It has a reasonable combination of price, price momentum and he sold it. It still has good return on equity but it missed on earnings due to a problem with integrating a new SAP system. There is always a chance that Rogers takes them in.

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Cogeco Cable (CCA-T)
September 17, 2018

(A Top Pick Jun 28/17, Down 16%) It was a disappointment. It has a reasonable combination of price, price momentum and he sold it. It still has good return on equity but it missed on earnings due to a problem with integrating a new SAP system. There is always a chance that Rogers takes them in.

DON'T BUY
DON'T BUY
September 5, 2018

This is a sector they are not attracted to presently. There is slow growth in the sector and they hold a fairly high level of debt. In a rising interest rate environment it could create headwinds.

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Cogeco Cable (CCA-T)
September 5, 2018

This is a sector they are not attracted to presently. There is slow growth in the sector and they hold a fairly high level of debt. In a rising interest rate environment it could create headwinds.

PAST TOP PICK
PAST TOP PICK
July 24, 2018

(A Top Pick July 14, 2017. Down 13%). He sold it at a loss. He thinks it might be OK to buy again but his model tells him to wait a bit longer before buying it back.

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Cogeco Cable (CCA-T)
July 24, 2018

(A Top Pick July 14, 2017. Down 13%). He sold it at a loss. He thinks it might be OK to buy again but his model tells him to wait a bit longer before buying it back.

PAST TOP PICK
PAST TOP PICK
March 21, 2018

(A Top Pick July 14/17 Down 14%). This is a great example where you need to trade with a stop loss – he uses a 7-10% stop. Poor earnings, along with a pullback below their stop, resulted in them selling off their holdings.

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Cogeco Cable (CCA-T)
March 21, 2018

(A Top Pick July 14/17 Down 14%). This is a great example where you need to trade with a stop loss – he uses a 7-10% stop. Poor earnings, along with a pullback below their stop, resulted in them selling off their holdings.

COMMENT
COMMENT
December 11, 2017

This has done very, very well over the last couple of years with a lot of the other telecommunication companies. It has always been held out as an acquisition that Rogers (RCI.B-T) has to make to get a hold of Oakville, Burlington area. The company has continued to diversify by buying more US assets. He would Buy Rogers or BCE (BCE-T) instead.

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Cogeco Cable (CCA-T)
December 11, 2017

This has done very, very well over the last couple of years with a lot of the other telecommunication companies. It has always been held out as an acquisition that Rogers (RCI.B-T) has to make to get a hold of Oakville, Burlington area. The company has continued to diversify by buying more US assets. He would Buy Rogers or BCE (BCE-T) instead.

COMMENT
COMMENT
November 14, 2017

He has nothing in particular against this stock, but look at his Top Picks. Dividend yield of 1.8%. (See Top Picks.)

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Cogeco Cable (CCA-T)
November 14, 2017

He has nothing in particular against this stock, but look at his Top Picks. Dividend yield of 1.8%. (See Top Picks.)

BUY
BUY
July 24, 2017

When you compare this to the other cable companies it is obviously better. It has a higher return on capital and is cheaper. Technology is not going away and we are going to need bandwidth. They are cousins of the utilities. This one is at the top of the list of cable companies.

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Cogeco Cable (CCA-T)
July 24, 2017

When you compare this to the other cable companies it is obviously better. It has a higher return on capital and is cheaper. Technology is not going away and we are going to need bandwidth. They are cousins of the utilities. This one is at the top of the list of cable companies.

TOP PICK
TOP PICK
July 14, 2017

Recently acquired some US cable operations. Earnings per share were up 37%, a 4% earnings surprise. Free cash flow was up 113% year over year. Free cash flow yield increased from 6.5% last year to 10.4% this year. Trailing ROE is 21%. PE to growth is .35. Dividend yield of 2.1%. (Analysts’ price target is $82.50.)

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Cogeco Cable (CCA-T)
July 14, 2017

Recently acquired some US cable operations. Earnings per share were up 37%, a 4% earnings surprise. Free cash flow was up 113% year over year. Free cash flow yield increased from 6.5% last year to 10.4% this year. Trailing ROE is 21%. PE to growth is .35. Dividend yield of 2.1%. (Analysts’ price target is $82.50.)

TOP PICK
TOP PICK
June 28, 2017

One of those stocks that hits all the boxes for him. It has strong price momentum, but still has great valuation, scoring in the top 10%. The only business they are not in is wireless. Cheap at 14X earnings and 16X ROE. Reasonably priced on an EV to EBITDA basis. They beat on their recent quarter and have some US growth opportunities with the cash flow that they generate. Dividend yield of 2.2%. (Analysts’ price target is $78.50.)

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Cogeco Cable (CCA-T)
June 28, 2017

One of those stocks that hits all the boxes for him. It has strong price momentum, but still has great valuation, scoring in the top 10%. The only business they are not in is wireless. Cheap at 14X earnings and 16X ROE. Reasonably priced on an EV to EBITDA basis. They beat on their recent quarter and have some US growth opportunities with the cash flow that they generate. Dividend yield of 2.2%. (Analysts’ price target is $78.50.)

DON'T BUY
DON'T BUY
January 5, 2017

His model price is $68.16. If it went down in price he would be a buyer but it trades right on its model price usually.

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Cogeco Cable (CCA-T)
January 5, 2017

His model price is $68.16. If it went down in price he would be a buyer but it trades right on its model price usually.

COMMENT
COMMENT
November 4, 2016

Ranks 262 out of 700 stocks, so kind of a lukewarm ranking. Earnings momentum and cash flow are both negative. Year-over-year cash flow, was down 13% and earnings were down 19%. There are better opportunities elsewhere.

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Cogeco Cable (CCA-T)
November 4, 2016

Ranks 262 out of 700 stocks, so kind of a lukewarm ranking. Earnings momentum and cash flow are both negative. Year-over-year cash flow, was down 13% and earnings were down 19%. There are better opportunities elsewhere.

COMMENT
COMMENT
November 4, 2016

Just reported and the quarter looked sort of OK. There were some areas with good news. The cable business itself was doing very well, but their Internet services for business wasn’t doing so well. On a multiple basis, relative to its competitors, it looks very inexpensive, but wonders if that isn’t for a reason. He doesn’t see any catalyst to drive the stock up. Trading at around 2X book. He would be much more comfortable at 1.5X book. Dividend yield of 2.7%.

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Cogeco Cable (CCA-T)
November 4, 2016

Just reported and the quarter looked sort of OK. There were some areas with good news. The cable business itself was doing very well, but their Internet services for business wasn’t doing so well. On a multiple basis, relative to its competitors, it looks very inexpensive, but wonders if that isn’t for a reason. He doesn’t see any catalyst to drive the stock up. Trading at around 2X book. He would be much more comfortable at 1.5X book. Dividend yield of 2.7%.

SELL
SELL
July 14, 2016

(Market Call Minute.) Sell this and Buy Bell Canada (BCE-T).

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Cogeco Cable (CCA-T)
July 14, 2016

(Market Call Minute.) Sell this and Buy Bell Canada (BCE-T).

COMMENT
COMMENT
March 30, 2016

Thinks valuations across the board are relatively stretched for these companies. Has some secular concerns when it comes to cable and telecommunication businesses, which have kept him out of it. You are going to see a tremendous amount of cord cutting i.e. consumers opting for skinnier cable packages or no cable package. That could significantly pressure pricing in the future.

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Cogeco Cable (CCA-T)
March 30, 2016

Thinks valuations across the board are relatively stretched for these companies. Has some secular concerns when it comes to cable and telecommunication businesses, which have kept him out of it. You are going to see a tremendous amount of cord cutting i.e. consumers opting for skinnier cable packages or no cable package. That could significantly pressure pricing in the future.

BUY WEAKNESS
BUY WEAKNESS
February 24, 2015

This has been a phenomenal story. The most important thing is free cash and what the companies do with it. This company is diversifying by getting into networking, data storage, and into other markets. Rogers (RCI.B-T) owns 32% of them and he doesn’t think it is properly reflected in Rogers’ stock price. He would buy more if this sold off.

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Cogeco Cable (CCA-T)
February 24, 2015

This has been a phenomenal story. The most important thing is free cash and what the companies do with it. This company is diversifying by getting into networking, data storage, and into other markets. Rogers (RCI.B-T) owns 32% of them and he doesn’t think it is properly reflected in Rogers’ stock price. He would buy more if this sold off.

BUY
BUY
December 16, 2014

Playing catch up. Multiples on cable TV in the US are higher and it is following suit. They feel they can make same tuck in acquisitions now.

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Cogeco Cable (CCA-T)
December 16, 2014

Playing catch up. Multiples on cable TV in the US are higher and it is following suit. They feel they can make same tuck in acquisitions now.

PAST TOP PICK
PAST TOP PICK
May 12, 2014

(Top Pick Apr 12/13, Up 41.29%) Was undervalued. They were integrating new assets they purchased. Margins were getting a little more robust. He got out as they reached a target.

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Cogeco Cable (CCA-T)
May 12, 2014

(Top Pick Apr 12/13, Up 41.29%) Was undervalued. They were integrating new assets they purchased. Margins were getting a little more robust. He got out as they reached a target.

BUY
BUY
May 7, 2014

Likes cable companies. But this is a different model with a lower yield. They spent their free cash flow outside of Canada with Acquisitions. Their purchase in the US has done very well.

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Likes cable companies. But this is a different model with a lower yield. They spent their free cash flow outside of Canada with Acquisitions. Their purchase in the US has done very well.

WATCH
WATCH
October 21, 2013

We are now back to the highs of 2012 and the market is starting to struggle a little bit. Not a fantastic entry point for the stock. Doesn’t think there is breakout potential. If we got a pullback in 2014 and we find support at last year’s lows, then it might be an entry point.

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Cogeco Cable (CCA-T)
October 21, 2013

We are now back to the highs of 2012 and the market is starting to struggle a little bit. Not a fantastic entry point for the stock. Doesn’t think there is breakout potential. If we got a pullback in 2014 and we find support at last year’s lows, then it might be an entry point.

DON'T BUY
DON'T BUY
June 5, 2013

Generally he is fairly positive on the Canadian cable space but really doesn’t like this company that well. Have made a number of strategic acquisitions that have turned out to be big problems. Would prefer Rogers (RCI.B-T) if it got 4%-5% cheaper.

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Cogeco Cable (CCA-T)
June 5, 2013

Generally he is fairly positive on the Canadian cable space but really doesn’t like this company that well. Have made a number of strategic acquisitions that have turned out to be big problems. Would prefer Rogers (RCI.B-T) if it got 4%-5% cheaper.

BUY
BUY
May 6, 2013

(Market Call Minute) stable cable play. Nothing fancy but core earnings 8-11% year in and year out.

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(Market Call Minute) stable cable play. Nothing fancy but core earnings 8-11% year in and year out.

TOP PICK
TOP PICK
April 12, 2013

Likes the cable space, not so much the cable business but the higher-margin stuff that they do on the side. Recently made 2 acquisitions in the US. Can see $50 in 12 months. Dividend yield of 2.34%.

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Cogeco Cable (CCA-T)
April 12, 2013

Likes the cable space, not so much the cable business but the higher-margin stuff that they do on the side. Recently made 2 acquisitions in the US. Can see $50 in 12 months. Dividend yield of 2.34%.

HOLD
HOLD
March 20, 2013

A fine company and there are only so many operating in this business.

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Cogeco Cable (CCA-T)
March 20, 2013

A fine company and there are only so many operating in this business.

TOP PICK
TOP PICK
February 22, 2013

Cable operator in Ontario and Québec. Has been cheap for a long time. Just did a US cable company acquisition. Had a checkered past with acquisitions. Typically trades at 1.5%-0.5% discount to the group to EBITDA and is currently at the bottom end. Looks like there is some low hanging fruit on their US acquisition. Expects to generate 11% free cash flow over the next few years. 2.44% yield.

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Cogeco Cable (CCA-T)
February 22, 2013

Cable operator in Ontario and Québec. Has been cheap for a long time. Just did a US cable company acquisition. Had a checkered past with acquisitions. Typically trades at 1.5%-0.5% discount to the group to EBITDA and is currently at the bottom end. Looks like there is some low hanging fruit on their US acquisition. Expects to generate 11% free cash flow over the next few years. 2.44% yield.

DON'T BUY
DON'T BUY
December 14, 2012

There are 2 things with cable companies. They are always run by families and they don’t always have other shareholders interests at heart. Also, more people are not watching TV, but are using iPads or laptops. Not fond of the space.

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Cogeco Cable (CCA-T)
December 14, 2012

There are 2 things with cable companies. They are always run by families and they don’t always have other shareholders interests at heart. Also, more people are not watching TV, but are using iPads or laptops. Not fond of the space.

DON'T BUY
DON'T BUY
October 25, 2012

It has been speculated as a potential takeover by Rogers. CCA has stretched their balance sheet now with their latest acquisition. This is a name he would be cautious about and would prefer BCE or maybe Rogers as well as one of his Top Picks.

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Cogeco Cable (CCA-T)
October 25, 2012

It has been speculated as a potential takeover by Rogers. CCA has stretched their balance sheet now with their latest acquisition. This is a name he would be cautious about and would prefer BCE or maybe Rogers as well as one of his Top Picks.

DON'T BUY
DON'T BUY
August 2, 2012

Went into an expansion in Portugal that did not work out and now they are into another expansion and the market does not like it. It is not a name with him.

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Cogeco Cable (CCA-T)
August 2, 2012

Went into an expansion in Portugal that did not work out and now they are into another expansion and the market does not like it. It is not a name with him.

PAST TOP PICK
PAST TOP PICK
April 24, 2012
(A Top Pick March 21/11.) Has reached its full value.
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Cogeco Cable (CCA-T)
April 24, 2012
(A Top Pick March 21/11.) Has reached its full value.
SELL
SELL
January 26, 2012
Broke down about the $50 mark. Several days in series going down. You have to sell this right now. Could easily go down to $1.93. Entry point may be at $45.00
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Cogeco Cable (CCA-T)
January 26, 2012
Broke down about the $50 mark. Several days in series going down. You have to sell this right now. Could easily go down to $1.93. Entry point may be at $45.00
PAST TOP PICK
PAST TOP PICK
January 9, 2012
(A Top Pick Mar 21/11. Up 9.4%.)
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Cogeco Cable (CCA-T)
January 9, 2012
(A Top Pick Mar 21/11. Up 9.4%.)
PAST TOP PICK
PAST TOP PICK
September 9, 2011
(A Top Pick Oct 1/10. Up 27.23%.)
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Cogeco Cable (CCA-T)
September 9, 2011
(A Top Pick Oct 1/10. Up 27.23%.)
PAST TOP PICK
PAST TOP PICK
July 26, 2011
(Top Pick July 28/10, Up 38.19%) Sold after quite a run in a short period of time. It was above what he felt it was worth. Wouldn’t buy it here. It would have to pull back substantially.
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Cogeco Cable (CCA-T)
July 26, 2011
(Top Pick July 28/10, Up 38.19%) Sold after quite a run in a short period of time. It was above what he felt it was worth. Wouldn’t buy it here. It would have to pull back substantially.
PAST TOP PICK
PAST TOP PICK
April 27, 2011
(A Top Pick Oct 1/10. Up 24.67%) Sold his holdings in January.
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Cogeco Cable (CCA-T)
April 27, 2011
(A Top Pick Oct 1/10. Up 24.67%) Sold his holdings in January.
TOP PICK
TOP PICK
March 21, 2011
Cogeco Cable Inc Bond 5.15% 16-Nov-2020. Exposure in Portugal is starting to turn around. Trading a little below par. Triple B Rating.
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Cogeco Cable (CCA-T)
March 21, 2011
Cogeco Cable Inc Bond 5.15% 16-Nov-2020. Exposure in Portugal is starting to turn around. Trading a little below par. Triple B Rating.
PAST TOP PICK
PAST TOP PICK
October 5, 2010
(A Top Pick Oct 8/09. Up 18.41%.) Still likes.
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Cogeco Cable (CCA-T)
October 5, 2010
(A Top Pick Oct 8/09. Up 18.41%.) Still likes.