STOCKCHASE

Landlines in the Maritimes, which are being cannibalized by mobile companies. Not a great growth profile. Cut distributions, which was not unexpected. Dividend is really solid. Attractive for yield investors.

2010-09-01

BUY

25.210

Karl Berger

In a good space at this time with strong free cash flow, strong dividend yield and a good track record. 11.5% yield. (Prefers Telus (T-T) with its wireless exposure and better growth prospects.)

2010-08-27

DON'T BUY

25.350

Hap (Robert) Sneddon FCSI

BCE is the big one in the field. There was a question as to whether they would by BA. Their second quarter was a bit of a miss. People are looking at the conversion and wonder where the distribution will go to. This is a bit of an uncertainty. Would prefer BCE.

2010-08-25

DON'T BUY

25.470

Bill Carrigan

Will have to convert into a corporation by the end of the year. Would be very suspicious of anything with a yield of 8% or greater. This one has a yield of 11.5%, which is too high.

2010-08-19

BUY

25.500

Chart shows a good base at around $25. Over 11% distribution, which may have to be lowered a little.

2010-08-18

Comment

26.030

May have to shave their 11.1% dividend a little when they convert to a corp. Pretty much locked into their area but recent results indicate they have not lost as much in land lines as other telephone companies. Have also held their own in wireless and in adding other services.

2010-07-28

BUY

26.120

Probably will be a cut in the payout. Wait until they convert and see what happens.

2010-07-22

BUY

25.960

Good income. Has announced that when it is no longer a trust, it will pay out $1.90, which will still be around 8%. Wire line business in Atlantic Canada, rural Ontario and Quebec is slowly declining. To offset that, they are starting to install fibre to the home.

2010-07-09

DON'T BUY

25.430

When they convert the dividend will be less than the current distribution. Not sure where their growth is going to come from. Relatively solid cash flow. Prefers others.

2010-06-30

BUY

25.540

Jim Huang

Likes the prospects. Nice and steady. Mot a lot of growth. Dividend is safe. Still looking at 7-1/2 to 8% after they convert and cut it a little.

2010-06-22

HOLD

25.730

Douglas Kee

(Market Call Minute) Question of distribution

2010-06-02

TOP PICK

25.940

As an income trust, their accounting is a little opaque. Expect it to do better after it converts to a corporation. Have been paying too much in distributions but expects this to end. Looking for a 5.5%-6% dividend.

2010-05-20

Comment

26.070

Ben Cheng

Had concerns that payout ratio was too high so he sold. Announced they are reducing their payout ratio and converting to a corp. New payout ratio will probably be 70%-75%. Also have issues with their subscribers being taken away by cable operators and this will be a constant grind on their business. If you are looking for a little bit of growth, this would not be his 1st pick.

2010-05-12

DON'T BUY

25.640

(Market Called Minute.) Strictly a no-growth legacy story. There is also no potential for increasing of income.

2010-05-10

BUY

25.580

(Market Call Minute.)

2010-05-05

DON'T BUY

26.220

Michael Decter

There is some uncertainty here because of the big ownership that BCE (BCE-T) has in it. He has been moving into other areas.

2010-04-22

DON'T BUY

25.470

David Driscoll

11% distribution because they have a lot of tax write-offs they can use. Feels that the distribution will drop drastically when it converts back to a corporation.

2010-04-07

BUY on WEAKNESS

25.890

Good yield. There is concern that there will be a cut in the payout when it gets closer to the conversion date but part of it is priced in. If it should drop because of a price cut, he would add to his position. On a 25%-30% cut you still have a reasonable yield.

2010-03-19

DON'T BUY

25.900

Doesn't think Bell Canada (BCE-T) will increase their stake as they have quite a plateful in other activities. If you own for the yield, it is probably OK but will have to convert to a corp and expects the payout will decrease at that point. Also can’t see where growth is going to come from as their market is saturated.

2010-03-17

DON'T BUY

25.350

Linda Shick

Dividend would have to shrink 30% when they convert to a corp. Would not own it for yield, but BCE might look to privatize it.

2010-03-02

WEAK BUY

25.950

BCE owns about 44% of it. Not growing revenue, but squeezing costs. Will eventually taken in by BCE. Distribution will be cut when they convert. Prediction of $1.90-$2 dividend after conversion.

2010-02-23

DON'T BUY

25.950

Barry Schwarrtz

Not a lot of upside. Was a nice income trust but not sure what happens when they convert. Prefers big telcos.

2010-02-22

DON'T BUY

25.940

Martin Hubbes, CFA

Would prefer BCE vs. BA because he is looking for growth, not income.

2010-02-18

DON'T BUY

25.700

Ara Nalbandian

It’s a good time to invest in the telecom sector , but not in this one. There is a dividend cut coming during the conversion to a corp. Eventually BCE might take it in.

2010-02-16

HOLD

26.210

You won't get rich with this one. An old wire line company that is having steady erosion but has been cutting costs faster than it is losing its wire line. Has also been increasing penetration in TV in the Maritimes. Once converted to a corp, yield will probably be within 15%-20% of where it is now.

2010-01-28

Comment

26.210

Colin Stewart

If they are not acquired before the date of conversion, they may have to cut distributions.

2010-01-28

HOLD

26.740

(Market Call Minute.) Growth prospects are minimal.

2010-01-27

BUY

27.940

Eastern landlines. Conservative balance sheet. Not a huge growth profile. Bell (BCE-T) is a majority shareholder and there is always talk of a takeover. Owns the debt but not the trust. Yield is compelling so wouldn't be surprised to see upper pressure on price.

2010-01-08

DON'T BUY

27.940

Douglas Kee

Yields 10.3%. Wire line in a slow growth economy and are losing market share to wireless. We'll have about two years of tax losses when they convert to a corp. Pays out more than the cash flow but are trying to cut costs in order to maintain the payout. Not sure they can do that.

2010-01-08

SELL

27.950

David Driscoll

(Market Call Minute) Sell because long distance revenues being generated in Maritimes.

2009-12-29

BUY

27.980

At the end of 2010 it will have to convert to corporation distribution will likely be cut to 80%. Not a growth story. Manages its costs very well so will be able to pay a dividend for quite some time.

2009-12-23

HOLD

27.980

Maybe peel a little profits off here. Dominant in their market but question is growth going forward. Wouldn’t worry in terms of downside risk.

2009-12-22

BUY

26.740

Douglas Kee

Well managed and distribution is reasonably safe. Wire line, which over time will decline. For now it's not a bad place to be.

2009-11-19

PAST TOP PICK

27.450

(Top Pick Oct 14/08, Up 28.9%) Would look for loss of revenue from wire line accelerating faster than people expect to sell it.

2009-10-13

HOLD

27.040

The wire line business of Bell (BCE-T). One of the better trusts to hold going into the 2011 period where trusts will have to convert. Excellent yield.

2009-09-23

Comment

27.040

(Market Call Minute.) Good income play but no real growth.

2009-09-23

Comment

26.880

Doesn't think BCE (BCE-T) will acquire this. Doesn't see any impetus for this. Yield of almost 11%. You won't see a lot of unit price appreciation. Good stable business.

2009-09-11

HOLD

27.480

Wire line company for the Bell system in eastern Canada plus some rural Ontario and Quebec. Losing customers on a steady basis to wireless but that is built into the price. Announced they will be putting a lot of money into fibre into the homes. Expensive, but helps to protect the customer with more bandwidth. 10.5% yield. We'll still be a high dividend payer after they incorporate.

2009-08-24

PAST TOP PICK

26.680

(A Top Pick Aug 29/08. Up 7.27%.) Good company and relatively cheap. Still a Buy.

2009-08-13

Comment

26.260

Bruce Campbell

The problem is, come January 2011, will lose its tax advantage. Low growth is not so good for a corporation. Sees it stagnating. Okay to Hold now but as time passes they would be increasingly nervous about the distribution.

2009-08-10

SELL

26.560

Good defensive name, particularly in this type of economy. Focused primarily on wire line on the East Coast. Yield of about 11% and expects that will be maintained over the next year. Longer term it will be challenged because of very little wireless exposure. Look for a 25%-30% cut in distributions after they convert post 2011. A little bit expensive, especially relative to BCE (BCE-T). Consider switching to BCE, which is yielding about 6.5%.

2009-07-17

DON'T BUY

26.340

Karl Berger

Would focus more towards the wireless space such as Telus (T-T) or Rogers (RCI.B-T). 11% yield but is in the traditional wire line space rather than wireless.

2009-07-14

DON'T BUY

26.200

Randy LeClair

Bonds maturing 2016 with a yield of about 5.85%. BBB credit. Have a monopoly in their area and the parent company is Bell Canada (BCE-T). He prefers a more diverse telecom name with greater geography to draw from. Not a lot of liquidity so may be difficult to sell. Would look at Bell (BCE-T), Rogers (RCI.B-T) or Telus (T-T).

2009-07-10

Comment

26.500

Expect distribution should be sustainable until they have to convert to a corporation. After that they will be taxable like anyone else.

2009-06-26

Comment

24.850

They’ll try to keep a reasonable yield but once they become a Corporation will probably have to cut back, possibly 30%-40%. You also have to wonder where their growth is going to come from.

2009-05-27

PAST TOP PICK

25.070

(A Top Pick June 5/08. Down 15.9% excluding disbursements.)

2009-05-21

BUY

24.920

Very steady unexciting business but right now bland is pretty good and the yield is pretty good and will probably stay that way for a couple of years. Over time, the landline business is being eroded.

2009-05-19

BUY

24.400

Very comfortable with this one. The regional companies are likely to be picked up by one of the seniors. 11.75% distribution.

2009-05-14

Comment

24.400

Craig MacAdam

Believes that eventually BCE (BCE-T) will take it in under the new leadership. Very healthy distribution without much risk.

2009-05-14

BUY

24.220

The landline phone company in eastern Canada. Stable company. 12% distribution.

2009-05-06

BUY

24.180

Hap (Robert) Sneddon FCSI

(Market Call Minute) Well run management team.

2009-05-04

HOLD

23.740

(Market Call Minute) Hold based on dividend.

2009-04-20

DON'T BUY

24.280

Nick Majendie

Paying almost 12%, but when it becomes a corporation in 2011 they are likely to cut dividend to about 2-1/4%. P/E ratio is a bit high – there is some capital risk.

2009-04-16

DON'T BUY

24.580

Market Call Minute. Boring infrastructure utility with declining revenue base, not exciting.

2009-04-14

BUY

24.860

Good utility income fund.

2009-03-25

BUY

25.310

Veronika Hirsch

Just reported good numbers. Attractive yield. Slight possibility that Bell Canada (BCE-T) at some point buys it. Safe. No financial issues.

2009-02-05

HOLD

24.650

(Market Call Minute.) Distribution is safe. Little bit expensive but very stable and safe.

2009-02-03

BUY

23.450

Likes businesses that have structures of everyday life. You need telephone and you need cable. Ideal in the income fund structure. 12.5% yield.

2009-01-22

BUY

25.410

Andrew Guy, CFA

The assets that were spun into this from BCE, excluded the wireless, which is where all the growth in the telecom space is. Its regional nature means less competition but wireless and cable is having an impact. A decent yield play. Not a homerun but a decent single.

2009-01-06

BUY

21.700

(Market Call Minute.) Possibility that BCE (BCE-T) could take it back. Solid revenue. Competition is not that progressive.

2008-12-17

BUY

21.750

Distribution of around 13%. Somewhat economically sensitive, but not a huge amount. Distributions are fairly secure. Should still be able to pay very high distributions even after incorporation. Strong chance that BCE (BCE-T) could bring in back into the fold.

2008-12-15

HOLD

22.500

Bill MacLachlan

(Market Call Minute.) Whole regional telecom industry is going to face some difficulties. Really don't know what's going to happen in the post BCE-Teachers situation.

2008-12-11

BUY

22.500

Ben Cheng

Operational focus is Northern Ontario and Northern Quebec. A rural landscape where there is not as much competition.

2008-12-08

BUY

23.180

Provides mostly wire line services to the Maritimes and rural communities in Ontario and Quebec. Won't be paying any cash taxes until 2012.

2008-11-20

BUY

25.250

The main wire line company in eastern Canada as well as rural Ontario and parts of Quebec. Excellent value here. Yield of 11.4%. Pretty close to recession proof. Very stable cash flows.

2008-11-11

HOLD

25.650

Kevin O'Leary

Likes the business model and management. Thinks the assumption that BCE will close is built into the price. Doesn't expect a lot of downside risk. However, as an income trust, it is going to have to go through the conversion process. He will hold this over the next year to see where it goes. Likes the telco space.

2008-11-04

HOLD

24.010

(Market Call Minute.) Would almost support a Buy if the deal with BCE goes through, as they would get more assets.

2008-10-31

Comment

24.070

Robert Lauzon

Just reported and earnings were good. Debt is a little high but the underlying assets are quite stable.

2008-10-29

Comment

23.170

Business itself is a decent one but what he doesn't like is that it is land lined in eastern Canada and not cellular. An ideal cash cow business.

2008-10-24

TOP PICK

23.940

Good chance that BCE could buy them. Price is low. Not a growth business, slowly eroding, but lots of cash flow to service payout 12% distribution. Once it’s not a trust any more, the payout will come down a little bit. They have tax losses they can use and payout will still remain at a relatively high rate, plus a chance BCE will take in the rest of it or sell it to someone else.

2008-10-14

BUY

22.790

Jeff Parent

It will be interesting to see if it can continue paying the distribution. If you want to buy, set a level of $21.50, but if it goes below $19.5 you have to get out.

2008-10-10

PAST TOP PICK

24.850

(Top Pick Oct 5/07, Down 29%) Not unhappy with the holding and will keep holding it. Not trading far away from where it was when it was a corp.; not terrible exciting, but solid and conservative and well run.

2008-10-02

HOLD

24.850

Yield is strong, low risk of distribution cut, but lacks long-term growth catalyst because they sold off their wireless business. No reason from an operating point of view that it needed to sell off.

2008-10-02

BUY

24.990

Gordon Higgins, CA, MBA

Reasonable valuation, reasonable dividend

2008-09-30

HOLD

27.020

Michael Decter

Can't see the growth prospects being very strong. When the BC (BCE-T) deal gets done there will be money looking for a new home in utilities. This might be one of the beneficiaries but prefers Rogers (RCI.B-T) instead.

2008-09-23

DON'T BUY

26.990

Duncan Stewart

Good yield. He has seen some slightly distressing numbers in North America from telephone companies. DSL is starting to shrink indicating the phone companies are starting to lose customers.

2008-09-11

TOP PICK

27.820

Yield of almost 10%. Fairly inexpensive. Doesn't expect the dividend to be too different from the current distribution.

2008-08-29

HOLD

27.400

Good management and good asset base. Decent yield.

2008-08-15

DON'T BUY

27.200

The substantial payout ratio of 84% doesn't leave a lot of room for declining cash flows to cover distributions. Very good business and operation but not sure where the growth is going to come from. There are also more competitors coming in. Wouldn't look at holding this for the long term.

2008-08-14

BUY

26.740

Andrew Guy, CFA

Very conservative company. Has been caught up in the volatility of the telecom sector as well as uncertainty of the future of its largest shareholder BCE. Generates great free cash flow. Good levels.

2008-07-22

TOP PICK

29.800

One of the few income trusts that are really solid. When they convert back into businesses, his suspicion is that this one is really cheap. Good 10% yield. Very well run business and very stable.

2008-06-05

HOLD

30.370

Kevin Hall BComm, CFA

Has probably been one of the best performing telecom stock. Pretty steady performer but wouldn't put new money in.

2008-05-06

Comment

30.390

Peter Brieger

60% controlled by Bell Canada (BCE-T). Likes it because of the income. Its future is a bit cloudy based on when the Teachers Pension takes over BCE.

2008-05-01

Comment

30.170

Robert Floyd

Doesn't see any material change if the BCE (BCE-T) deal goes through. 9.6% yield. This would be one for an income portfolio.

2008-04-29

BUY

30.490

A rural wire line telephone company in eastern Canada and some rural parts of Ontario and Quebec. Wire line is a shrinking business. Not a lot of capital expenditure so they are paying income out to shareholders. Not a growth business. Pays about 10%.

2008-04-10

BUY

29.010

(Market Call Minute.) This gives you a 10% yield with minimal downside risk.

2008-03-10

Comment

29.290

Gavin Graham

With East Link coming into Halifax and doing Voice over Internet this company lost about one third of its market share in landlines in 3 years. Probably all the adapters have moved and you do have both landlines and mobile. The real problem is that it is paying out almost 96% of its cash flow so when it starts paying tax in 2010, it may have to cut its payout.

2008-03-06

Comment

29.440

Bill Shaw

Distribution is fairly safe and solid. Decent yield. Should continue to do reasonably well. There are more attractive opportunities in the telecom sector such as Telus (T-T), Bell Canada (BCE-T) and Manitoba Tel (MBT-T) and the yields are not too far off this one.

2008-02-19

BUY

29.000

David Burrows

Telecom has not been a space that has been performing well. There are concerns about wire line revenues as well as the wireless side. If he had to pick one it would be this, which is paying about 9.5%. Just recently raised their distribution and only paying out about 90% of cash flow. Technically it has been performing better than most of the telecom stocks.

2008-02-15

TOP PICK

28.340

Well protected and great payout. The dominant telco in eastern Canada. Payout of $2.90 giving you over 10%. Wire line telephone is not a growth business, so you don't own this for growth, only income.

2008-02-11

BUY

27.740

(Market Call Minute.) Has been hurt with the liquidity. Still have the landlines and a very conservative capital structure. Expect it will recover in the telco space.

2008-02-05

TOP PICK

27.600

Mostly into wire line on the east coast and it is not a growing business but the payout is over 10% while you are waiting for the market to turn around. Stable business.

2008-01-29

Comment

27.000

Primarily wire line in Atlantic Canada. Line erosion seems to be stabilizing. Made an acquisition of Bell Nordique giving them a small wireless exposure in northern Quebec and Northern Ontario. Some concern that they might sell their entire stake of their 42% holding of their parent company BCE (BCE-T). He doesn't think they will.

2008-01-22

HOLD

27.000

Ben Cheng

(Market Call Minute.) Probably at little more recession resistant. Has good growth in their wireless sector.

2008-01-21

WEAK BUY

28.220

Relatively safe place to be. After BCE is gone, it will be one of the last telecom utilities you can get exposure to. Distribution should be pretty safe. Somewhat constrained in where growth is going to come from in the future. Would look at it for the yield but not capital appreciation.

2008-01-08

TOP PICK

28.350

The dominant phone company in eastern Canada. At current prices it has a 10% payout. In a declining business and it's not likely distributions will grow much, but in a bad market, he is happy to sit with 10%. When the market starts to lift, you will probably get some lift in the stock.

2007-12-18

HOLD

28.800

Kevin Hall BComm, CFA

Has corrected in line with the broader equity markets. This is a good, steady, core holding. Not a lot of excitement. Will deliver a pretty good, steady, stable yield. There might be 1%-2% annual growth in the underlying business.

2007-12-04

BUY

28.850

(Market Call Minute.)

2007-12-03

BUY

29.070