Quebecor Inc (B) (QBR.B.TO)

(A Top Pick Sept 23/16. Up 18%.) There is more to go on this. He still models 19% EPS. Looking for it to go to $54.

They have about 25% wireless growth due to their Spectrum advantages over the incumbents in Québec. That drives the 20% EPS over the next couple of years. The stock is trading cheaper than its five-year average by a wide margin. There is also $500 million of Spectrum licenses that they can monetize on. Dividend yield of 0.45%.

Videotron 7.125% Jan 15, 2020 Bond. (Top Pick Sep 10/14, Up 5.00%) They called it. It always felt like an investment grade bond.

(Top Pick Feb 10/14, Up 34.16%) They sold off most of their newspaper assets. They are just getting over their hump of spending. They got handed spectrum for a song. It should do better relative to the group. People are worried about the regulatory risk in the sector.

Thinks they will benefit from the government’s push to introduce a 4^th wireless contender.

(A Top Pick Feb 10/14. Up 33.07%.) Feels this could be a legitimate 4^th player in Canadian telecoms. They are strong in the Québec market, and they could expand into the rest of Canada. They are now starting to generate positive free cash flow. A good story.

(A Top Pick Feb 10/14. Up 26.46%.) The de facto 4th player in the telecom area. He doesn’t own this for the publishing assets, but getting it for what it is going to be doing in wireless. It was cheaper than the rest of the group and had better growth potential.

Can be a forth national carrier. The gov’t will be supportive of a home grown competitor. Probably a better growth trajectory compared to the other 3.

This is a very good value stock. Was in a trading range for several months, but is now breaking out to newer highs. He expects the stock will outperform the sector.

Long Videotron 5.625% 6.2025 Bond and Short Gov’t of Canada 1.50% 6/2023 Bond. (Top Pick May 15/14, Up 2.77% / Down 2.03%) Triple ‘B’ company. If government convinces them to be the 4^th national carrier, their wireless will have to be standalone entity.

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 4^th big player out there.