What’s a broadcaster?
It used to be a TV network, plain and simple, but nowadays it’s a telco or media giant with tentacles reaching into the internet, cell phones, cable TV and, increasingly, streaming services.
In Canada, the three telcos enjoy an oligopoly by charging some of the highest data and phone rates in the world, which pay shareholders safe dividends.
An expected interest rate will be another tailwind.
Across the border, Disney has entered the streaming business with Disney+ that may or may not take away business from Netflix. Meanwhile, more traditional broadcasters, such as ATN here (SAT-X) or Grupo Televisa (TV-N) in America and Mexico, serve niche markets.
Here’s a list of the top broadcasting stocks:
An overlooked Canadian success story, Evertz, upgrades broadcasting equipment across North America. They are the leader in this space, and are expanding their presence.
Good managers who own a lot of stock. The stock has been rangebound for years as they payout a lot of its cash flow. Broadcasting has its challenges, though. ET are leaders in their space, but they serve a limited audience, which keeps him away. If you own it, hold on and watch what the…
It’s no secret that Corus has been struggling, then last month Shaw sold its $548 million stake. Some say this now is a buying opportunity, while others stay on the sidelines.
He used to own it. It's very well managed but in a challenging space. They own good properties. They're ad-dependent, but have a stable subscriber base of their specialty channels. They're a little undervalued. Be watch industry cord-cutting and ad spending. They already cut their dividend, so he assumes it's stable.
Based in Markham, ATN broadcasts to the South Asian-Canadian community in languages including Hindi and Bengali. This demographic is large and wealthy, but ATN contends with piracy of South Asian content. That said, ATN is profitable and generates decent cash flow.
They have a fair bit of cash in the bank. Being a smaller company it suffers more from pirated content on the Internet. It was a really well run company. They had a lot of cash in the bank.
Telus has forecast its annual dividend growth rate of 7-10% for the next three years as its payout ratio declines. All this as the big three slash unlimited broadband rates in a battle to win customers.
Telus Health going well. Small impact from Covid. High dividend with 6% growth. Great name. Not cheap. Part of the solution in the thirst for data. Best of the bunch.
Rogers shot the opening salvo in the current data-plan war among Canadian telcos. A Toronto Raptors’ championship won’t hurt Rogers’ bottom line, but Rogers trails its peers in laying 5G fiber-optic to the home.
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…
A dominant player in this space that’s long enjoyed growth, but how much growth is left? At least the 5% dividend yield is safe, which is why many investors buy this stock.
All the telcos have paused over the last few months. Mobile data volume allowance is going up in plans while plan costs go down. A price war is hitting their top line. He prefers Shaw and Rogers. It is a marriage that at some point may happen. Telus has created a digital health care market.…
It’s enjoyed a superb run since 2015 and many analysts expect more growth to come, but their operations are limited to Quebec.
Pre-COVIC, he saw that tech was going to pop, and now the puck is heading to boring value names, like Quebecor. Has an 11% growth rate and trades at 12.6x 2021. Its a very cheap telco and have a lot of cash to return to shareholders and raise the dividend if they wish. Their wireless…
The U.S. Justice Department originally challenged AT&T’s takeover 12 months ago, but to the surprise of some eventually approved the deal. Now, the entertainment giant is even bigger as WarnerMedia. The company operates in film, TV, cable and publishing, including HBO and the Turner Broadcasting System.
(A Top Pick Jan 30/18, Up 5%) He bought this back believing the AT&T merger would go through--and it did. It worked out for him.
The world’s largest teleco, Comcast penetrates nearly half of all Amerian households. All eyes are on Comcast’s $39 billion takeover of U.K. broadcaster, Sky.
(A Top Pick Jul 08/19, Down 6%) The broadband business was seen as an infrastructure play. There were a string of broadband revenue growth cycles, but then COVID-19 hit and the theme park part of the business saw revenues fall to zero. There was a recent report suggesting splitting the business into two, and he…
Gray is a broadcaster based in Atlanta that operates in over 90 small- and mid-sized American markets. It continues to expand.
(A Top Pick May 31/18, Up 37%) $16.20 exit level. This company's too uneven, he wouldn't recommend it at this point.
Based in Colorado, this direct-broadcast satellite player owns Dish Network. It doesn’t pay a dividend, but the stock just came off its 52-week high.
One of the biggest announcements this spring was the long-awaited announcement of Disney+, a new streaming service that’s expect to compete with Netflix. Or will it complement the streamer by reaching a younger audience? Regardless, this is definitely a stock to watch.
(A Top Pick Oct 25/19, Down 3%) Theme parks and cruises brought it down. They have no revenue streams from these but it is almost what it was before the pandemic. They pushed more content through their Disney Plus. He would continue to buy it on dips.
This Ottawa software company helps service providers launch next-generation video offerings. It’s partnered with the likes of Netflix, Amazon and Google. Despite a good balance sheet, Espial’s operations have been quiet lately.
They haven't won many contracts lately. They had signed a deal with Rogers to make them look like Apple TV and more user-friendly, but lost that contract, then signed a few new contracts, but those revenues haven't come to fruition. He still holds it thought it's been going down. There's lot of cash on the…
A Mexican multimedia company, Grupo is the second-largest broadcaster in Hispanic America as well as the first of all the Spanish-speaking world. Much of its programming airs in the U.S.
(A Top Pick Jan 7/13. Up 4.33%.) When it became apparent the developing markets were behaving a little bit more poorly, he exited his position at about $30. Great company and ultimately it is in the right group but he prefers to focus on more US domestic companies.