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
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