Canadian (or more accurately, French-Canadian) communications company Quebecor (OTCPK:QBCRF)(QBR-B.TO) has been a pretty solid pick for me over the past fourteen months or so, as the shares have risen about 40% from my initial recommendation and 20% from my last update on the company.
Now, though, the shares are trading close to fair value and I'm not
convinced there's enough reward in play for the risk at hand. Whether
the company plans to go forward with a national wireless development
plan, whether it buys out Caisse's 25% stake in Quebecor Media, and how
the company allocates capital within its existing operations all are
sizable unknowns that stack up pretty evenly with the prospects of
better wireless performance within Quebec.
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After A Good Run, It's "À Bientôt" For Quebecor
Showing posts with label Shaw Communications. Show all posts
Showing posts with label Shaw Communications. Show all posts
Sunday, April 26, 2015
Thursday, February 6, 2014
Seeking Alpha: Quebecor's Efforts To Improve Growth And Margins Not Fully Rewarded
Even though trading Canadian stocks has gotten quite a bit easier in
recent years, a lot of Canadian companies don't really get the sort of
attention you might expect if they were a U.S. company. Quebecor (OTCPK:QBCRF)
(QBR-B.TO) looks like a good case in point, as this large
Montreal-based media holding company is all but unknown to many American investors.
With their high debt levels and distant free cash flow streams, media and communications companies can be tricky to value and Quebecor is no exception. I do like the company's efforts to reduce its exposure to the low margin and declining newspaper business, as well as the company's willingness to let BCE's (BCE) Bell Canada gain share at the cost of margins. The market is likely to remain nervous about the company's ambitions in wireless and its growth potential in cable, but I believe a fair value above C$30 makes these shares worth considering.
Quebecor's unsponsored ADRs trade infrequently and I would strongly suggest buying the Toronto-listed shares. Many (if not most) brokerages allow U.S. investors to buy and sell Canadian stocks at reasonable commissions.
Click here for more:
Quebecor's Efforts To Improve Growth And Margins Not Fully Rewarded
Montreal-based media holding company is all but unknown to many American investors.
With their high debt levels and distant free cash flow streams, media and communications companies can be tricky to value and Quebecor is no exception. I do like the company's efforts to reduce its exposure to the low margin and declining newspaper business, as well as the company's willingness to let BCE's (BCE) Bell Canada gain share at the cost of margins. The market is likely to remain nervous about the company's ambitions in wireless and its growth potential in cable, but I believe a fair value above C$30 makes these shares worth considering.
Quebecor's unsponsored ADRs trade infrequently and I would strongly suggest buying the Toronto-listed shares. Many (if not most) brokerages allow U.S. investors to buy and sell Canadian stocks at reasonable commissions.
Click here for more:
Quebecor's Efforts To Improve Growth And Margins Not Fully Rewarded
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