Wednesday, August 27, 2014

Seeking Alpha: Quebecor Has A Big Decision To Make In Wireless

These are interesting days for Quebecor (OTCPK:QBCRF) (QBR-B.TO). The Canadian government has made it clear that they'd like a fourth national wireless service provider, but Quebecor has been cagey about how it will approach this opportunity - leaving a lot of speculation and concern in the market as to the company's plans. In the meantime, the newly restructured media assets business seem to be doing better, while the company's Videostron operation is trying to balance weak subs with better margins.

I liked Qubecor in early February, thinking that the market was underestimating what the company could do with its margins and applying too much of a discount to the wireless operations. The shares are up more than 15% since then, beating the S&P 500 and keeping pace with the TSX. Quebecor has also done quite a bit better than BCE (NYSE:BCE) and Telus (NYSE:TU) over that stretch. I still think there's double-digit potential in these shares, but readers considering them should recognize that greater clarity on the company's wireless plans may be a key in getting more value into the stock price.

Follow this link to the full article:
Quebecor Has A Big Decision To Make In Wireless

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