BCE and Telus Go On Sale

The share prices of the three main Canadian telecommunication companies came under pressure yesterday after Shaw Communications announced the acquisition of WIND Mobile for C$1.6 billion. This will effectively create a fourth major competitor in the Canadian mobile telecommunications market.

The announcement yesterday reduced the price of our Dividend Champion’s holdings, BCE (TSX: BCE, NYSE: BCE) and Telus (TSX: T, NYSE:TU), $2 a share and $3 a share respectively. 

While we have reduced the fair value of both BCE and Telus as a result of the Shaw/WIND transaction, we believe this creates an excellent buying opportunity for both BCE and Telus.

Look out for full details in our Maple Leaf Memo next week.

Happy investing

Deon Vernooy

Chief Investment Strategist

Canadian Edge


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