Telus Corp (T.TO)

Obviously the selloff was overdone. Despite Verizon (VZ-N) being a big brand dominant name, he feels they will face some obstacles when they are competing against the Canadian telcos. If they buy Wynd and Mobilicity they will have less reliable networks. Also, bundled pricing is big. This selloff is a pretty decent opportunity.

With Verizon making overtures to come into Canada it traded off with the others. Telus really stands out as one of the top telecom names, insulated slightly from Verizon coming in. Dividend growth company with mandated dividend growth over the next 3 years. The sell off is largely over done. Rogers would be the most exposed to Verizon and BCE not so much.

Likes sector. Suffered with Verizon rumour. He sees it as having lots of uncertainty. No approvals. There are lots of balls in the air.

Telcos in Canada are all trading at hefty valuations. Sold off when we heard ‘tapering’ comments. They are now in more mature markets than they used to be. Verizon coming in will affect pricing and margins on that business. Just in case Verizon does come in he got out of telcos.

The overriding concern is if Verizon is coming into Canada. Doesn’t want to touch telecom until we know. He feels there is increasing competition.

One of the strongest companies in Canada. You can’t go too wrong. Steady cash flow, nice dividend yield. But he would wait because the higher dividend yielding companies are probably going to underperform in the near term. He has a small holding.

Feels the stock dropped because of the recent ruling from Revenue Canada. At the end of the day, he doesn’t think there is going to be a 4^th player. All 3 telcos you could buy at their current levels but this one, of the 3, has the greatest amount of growth. His target price is $41 in 12 months. 4% quarterly dividend yield.

Extremely well run company. If you own, you could consider taking profits and buying back later on.

(Market Call Minute.) This is probably in Buy territory here.

(Market Call Minute.) Historically this is getting quite expensive at 2.5X Book. (See Top Picks.)

All the major telcos are solid companies. There is a battle going on for market share. This one got turned down on its attempt to acquire Mobilicity. He prefers Bell Canada (BCE-T) because the yield is somewhat higher. On a longer-term basis, he would not worry about this one at all.

A very profitable industry and this is a good holding. It has had a very steady and rising dividend. Committed to raise their dividend twice a year for 3 years, 2.5 years ago. Recently reiterated that if their cash flow continued to grow they would raise their dividend twice a year for the next 3 years again. In the last 2-3 weeks a lot of the telecoms stocks have pulled back, which makes it a great opportunity to buy.

Telus (T-T) or Bell Canada (BCE-T)? Feels they are both great companies. One of the problems is that they have run up a fair bit in the last little while which goes back to the trend that people have put money into dividend stocks. There is a lot of expectation in these things. There may be some short-term volatility which will allow you to buy half a position and the other half on a pull back.

Telecom is in one of the leading sectors for sector rotation. It is leading in the US and it is leading in Canada. The Up is still Up and there is no sign of a Top. Keep an eye on the 200 day moving average and back away when it breaks down through.

He is a Telus fan. It has pretty demonstrable growth ahead of it. Dominant provider in the West on the wireless side, 8-9% growth going forward. BCE probably has 5%. It could do a lot with content. As far as defensive categories that have worked well, this has done well.