Telus Corp (T.TO)

Telus (T-T) or Bell Canada (BCE-T)? He is not in the telecom space. This is an oligopoly and is pretty competitive. This one has outperformed Bell in the last little while. There is nothing wrong with either one of them. Because there is a good yield on both of them, they might have a bit of yield sensitivity if the bonds do start to back up a bit. Wouldn’t chase these, but would buy on pullbacks. They are both quality companies.

Of all the operators, she thinks this is probably one of the better ones. They generate a lot of cash flow. One of their objectives is to increase their dividend every year. Have done quite well, partially because they do provide yield. This is more of a safe, defensive bet.

Performing very nicely this year. Great dividend return of capital back to shareholder story. Not sure there is a tremendous amount more growth. For Canadian telecoms, regulation is a constant headwind. If you own, consider taking some money off the table and look for other good dividend paying opportunities, such as insurance companies.

Doesn't think this is a value stock right now, nor is it a momentum stock. From a purely technical perspective, a key resistance point is $42.50, and if it gets above there you can see the stock having another run. An interesting company. Unlike Rogers (RCI.B-T) or Bell (BCE-T), they are not integrated in the same way. They don’t own sports teams or content, but are more of a pure play in communication. Doesn't think it is a takeover target. Still has upside potential, but it is right up against a resistance point here.

He is starting to Short the stock. This has been a phenomenal name and he has held it for about 6 years. In all of the telecommunications, the growth is in wireless. Wireless growth in Canada last year was 0.3%, no growth. Mobile penetration is 80%, which sounds great, but a lot less than it is in the US. We are not seeing any growth in the wireless side.

There are interesting dynamics in the space. Are the regulators going to let in a 4^th service provider? He owns RCI.B-T. They will all grow about the same amount. Likes the media and broadcasting assets of Rogers. Telus lacks this. He doesn’t see any upside to this one. He would swap out of T-T and into RCI.B-T

You are buying this one for the growth relative to the other telcos. You are probably going to see a rising dividend growth profile on this with a starting point of 4%.

Long Telus Corp 4.40% 4/2043 bonds and Short Gov’t Of Canada 4.00% 6/2041 bonds. (Top Pick May 15/14, Up 1.43%, Down 4.19%) Designed to make money in an interest rate rising environment.

Owns none of the Canadian Telcos. This one is fine, but there is not much growth left in these guys. The government is trying to intervene still. You are buying it for the yield.

The government is committed to bringing in a forth competitor or otherwise lowering prices. She is underweight Telcos in her portfolio. There are a number of pressures that will challenge them. This is the one they do own, however.

Well run company that he likes better than Rogers and so on. T-T’s growth is on the mobile side. BCE-T will move sideways while T-T will have capital appreciation. These have all done well and are trading at the high end of their ranges, but if you want to own one, this is the best.

This is sitting on one of its break points at about 2.5X BV. The stock has about 20% upside potential from here. The $38-$39 level has to hold; otherwise the stock could have some downside risk.

Doesn’t like the communications space. CRTC has been inundated with proposals for unbundling. There will be confusion in the space. Likes this one the best of the bunch because they are not impacted by content. Hold if you have it.

Getting into medical technology software. He does not know if this will move the needle. Loves how they tell you what will happen with the dividend. He is a buyer and bought today for new clients. Sees dividend going much higher in the future. Likes the reasonable valuation and certainty of the cash flows going forward.

Defensive stock. The bad news is all in the telecom sector already. They have done exceptionally well in wireless. They are going to use their free cash flow in areas like content and dividends. Very little downside in the stock and some growth going forward.