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.
They have a solid balance sheet and are well managed. It is a lumpy business. The stock has been in a narrow band for years and years. The dividend is not at risk.
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 shorts companies that show a downward trend. This company has been going down for quite a while. The business model for independent channels has been difficult and he doesn’t see a reason for that to change soon. They did a big dividend cut. Tax loss season is coming which will put further downward pressure…
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.
TELUS vs. ROGERS All Canadian telcos and utilities are overpriced as investors expect a recession later this year of mid-2020. $39.52 is his target price for Telus; $61.22 for Rogers. Investors are attacted by the yields.
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.
2.9% dividend. Good asset play going against the grain of the markets. He likes it. Upside is unlimited.
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.
BCE vs. AT&T. Two issues are currency and market size. Likes BCE's balance sheet better, but worries about ability to withstand competition if Canada ever deregulates telcos. AT&T has a lot of debt, and he worries about ability to pay it down and still pay the dividend. AT&T lives in a deregulated market. They're trying…
It’s enjoyed a superb run since 2015 and many analysts expect more growth to come, but their operations are limited to Quebec.
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 Top Pick April 27/16. Up 24%.) This just did a 2 for 1 stock split last week, and continues to have huge market leadership. They continue to roll out the X1 Infinity Operating system. This has a pretty captive audience and a really good subscriber rate. It should be part of everybody’s portfolio. Still…
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.
Has a strong global brand: Disney, ESPN, Pixar, Marvel and Lucas Film. Their acquisition of 21st Century Fox that just closed boosts their content offering and distribution capabilities for the forthcoming Disney+ streaming service which should do well. Pays a dividend yield of 1.6%. (Analysts’ price target is $128.50)
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.