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.
A Canadian tech company involved in broadcast equipment as well as software in cloud-based video-degined networking. They re-invest 10-20% of revenues into R&D to make sure they stay ahead of trends. The CEO/co-founder owns 65% of the stock. In Raptors games, the officials review plays on screens supplied by Evertz (Analysts' price target $19.25)
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 has owned it in the past. It is once again at the mercy of its industry. It is fighting against a big tide. It has come off quite a bit. It could be an interesting candidate but you have to know what the content is worth in the industry. It is more of a…
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.
Down 24% in the last year. It got way ahead of itself. He has been accumulating shares and is the second biggest shareholder. Now in the low $2s it is attractive. 4% dividend.
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.
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.
$64.70 is a low from late August and a bit lower in April. It held in there. Around $69 there is a bunch of resistance. It has had no strength against the S&P since June. We are probably going to come back to the low $60s test.
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.
A safe haven stock. A great yield and the dividend grows yearly. If interest rates fall, it will continue to look good. Earnings are growing as well. Yield 5.14% (Analysts’ price target is $62.14)
It’s enjoyed a superb run since 2015 and many analysts expect more growth to come, but their operations are limited to Quebec.
Videotron 7.125% Jan 15, 2020 Bond. Credit metrics of an investment grade bond. They are the cable providers of Quebec. They have to push their profits up to QBR.B-T, but in the case of any insolvency of QBR, Videotron is made whole. The biggest risk is that they would be the 4th big player out…
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 media company that owns HBO, CNN and Turner Broadcast. From a “cutting the cord” standpoint and a potential loss standpoint, this is probably the better positioned as compared to Disney (DIS-N), because HBO tends to be a one-off and historically hasn’t been a packaged product universally. Also, it is doing “over the top” streaming…
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 complicated company. It is family owned. He prefers Disney (DIS-N), because they don’t have ownership of cable TV stations. Feels Netflix is too much of a threat to TV stations. He likes part of this company, but doesn’t like the stock.
Gray is a broadcaster based in Atlanta that operates in over 90 small- and mid-sized American markets. It continues to expand.
Based in Atlanta. A small-cap value play that could reach $14. Has dropped from $17 to $12. If it drops below $11.50, he won't buy. Good volume. No dividend. (Analysts' price target $20.13)
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.
November is when they will launch their new direct to consumer product at a very attractive monthly price. The purchase of 21st Century Fox adds a lot of new content to integrate into their operations. The stock is reasonably priced. Yield 1.28% (Analysts’ price target is $154.71)
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.
(Market Call Minute.) They lost a customer which really concerned him. Have very high customer concentration and until he finds out what is going on with that customer he would consider this as a Hold.
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.