# Telus (T and T.A)



## Cal

http://about.telus.com/community/en...nverting-non-voting-shares-into-voting-shares

To vote on converting non voting shares into voting shares.

Also small dividend increase given.


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## doctrine

Would be great for me.. I hold the non-voting and get an upgrade for free!

Also, you can get the non-voting shares at a 4.5% yield for the July dividend increase. Not too bad given you can expect 10%/yr for the next several years.


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## hboy43

doctrine said:


> Would be great for me.. I hold the non-voting and get an upgrade for free!


I hold some of each. I think I lost some money today.

hboy43


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## dubmac

I've been dripping Telus for several years - for some reason only non-voting shares (T.A) are purchased in the drip - which means that I have accumulated some non-voting T.A shares which I'll gladly trade for voting shares.


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## gibor365

Looks like RCI did better than peers:
Q4 adjusted EPS C$0.70 Vs C$0.60 a yr ago

* Cable, media segments helps Rogers top forcasts

* Wireless profit drops partly on high costs

* Dividend payout increased 11 pct

* Board authorizes C$1 bln share buyback program (Adds details on results, estimates and outlook)


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## humble_pie

afaik T has substantial US institutional shareholders who hold the non-voting, they may oppose, would be fascinating lobbying story since they could oppose but cannot vote.

en tout cas if the vote is carried arbitrage will push the 2 series of shares together in price ... would T drop or would t.a/tu rise.


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## doctrine

Well, yesterday T was trading at a $2.10 premium/share. Today that has narrowed to $0.50, with both stocks going up. Seems like the non-voting has benefited more. Huge volumes though, > 10m on both!

Still, a 4.3% yield on the July $0.61 dividend.


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## riseofamillionaire

One of the best in class for telcos. I also like BA, CCA, SAT


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## humble_pie

the lobbying is a done deal & even the US-held non-voting will vote, says the news release.

tu dropped afterhours last night & tu/t.a may slip slightly today, but the trajectory seems clear. They will rise towards T common.

hey black mac i am happy for you.

argo will you be thinking of selling at some point during the euphoria ?
tu has options, there might be some possibilities - tu & t.a have the same cusip number.


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## hboy43

humble_pie said:


> afaik T has substantial US institutional shareholders who hold the non-voting, they may oppose, would be fascinating lobbying story since they could oppose but cannot vote.


Don't these matters require both share classes to vote as a class and require both votes to pass?

hboy43


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## humble_pie

hboy telus sets forth the details very well in its news release (quite far down).

originally they had a huge US institutional shareholder & federal regulations restricting foreign ownership of federally-regulated industries were in force & effect. Telus therefore created the non-voting class of shares & in the US these became TU.

these days foreign ownership is diffuse & there is no longer any large solitary holder. So telus is free to convert all shares into telus common.

apparently the non-voting shareholders in both t.a & tu will get to vote on this important issue.

again, i'm genuinely happy for the drip holders of t.a. Windfall profits are so fun.


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## groceryalerts

I am not sure which Canadian TelCo I like more - Rogers, or Telus.


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## gibor365

groceryalerts said:


> I am not sure which Canadian TelCo I like more - Rogers, or Telus.


For Ontario residend comparing RCI vs T , it's like comparing elephant vs microbe 

interesting article

http://seekingalpha.com/article/315...n-a-company-because-it-owns-sports-franchises


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## riseofamillionaire

The market seemed to like the restructuring. The stock rarely has ameaningful pullback. A great core holding for anyone. Wish I owned it


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## dubmac

News alert! 
Watch the price of telcoms folkd- Ottawa is releasing information regarding their plans for foreign competition among telecoms - those old faithfuls like BCE, Telus and RCI.B could....go............down. Annoucement set for 4 pm today.


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## Dibs

http://www.theglobeandmail.com/globe-investor/ottawa-opens-telecom-to-foreigners/article2369109/


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## doctrine

I think any decrease is great, and I'll be buying more. Who is going to invest billions in new infrastructure in a small market dominated by three big players that will be hit by foreign ownership rules if they actually get to 10%? Answer: no one. There will be lots of small players though, ones that pay piggyback network fees, and ones that sell out to the bigger companies as soon as their licenses allow.


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## Eder

I'm having a hard time figuring out how this affects the big three down the road. I'm thinking in the long run...5years or so...the new rules are slightly bullish for T BCE and Rodgers.
The kicker is for a small Wind type start up to grow it will be required to start servicing the relatively unprofitable rural areas that the big 3 already take care of. It seems that keeps their moat intact, and like previously mentioned,the smaller providers will get bought up.
I guess we'll see.


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## Cal

Deal not to go through???

http://ca.finance.yahoo.com/news/york-based-hedge-fund-vote-010712707.html


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## Andre112

Anyone knows about Telus Garden that's going to be built in downtown Vancouver?
Since when are they involved in contructions?

The new Telus store in Laval, Quebec looks great. Kind of like an Apple store though.
http://mobilesyrup.com/2012/04/10/t...tore-opens-in-laval-quebec-with-live-devices/


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## CashMoney101

TELUS is not a developper, but they have been involved in several real estate plays. The latest that I have seen from the real estate department is they are consolidating properties as we have a very high vacancy rate in the variety of TELUS operations due to the company's relentless pursuit of overseas outsourcing. So basically, there are all these call centres that are half empty, so they are moving people around and consolidating and trying to make a profit off properties like where they are building the TELUS garden. Another development of TELUS' is CityPlace in downtown Toronto. It's not a core business by any means and my understanding is they hire developers, but since they own a lot of real estate they are trying to get max value out of it. In the area where I work (Calgary) there has been huge amounts of people being moved from building to building as we phase out what was our main building here and is now being converted to Encana. This building however is not actually owned by TELUS, but by H&R property management. Encana is taking over the building since their new behemoth The Bow (right across the street) is way behind schedule.


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## Cal

http://www.theglobeandmail.com/repo...-its-2-billion-stake-in-telus/article4233935/

Anyone else wonder if mason Capital is holding out from Telus for a pay day so that Telus can make the dual structured shares changes go through.


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## doctrine

If there is anyone believed that Mason would stick around, well PM me for a great offer on a fantastic piece of land in Florida. They'll get out, because at most they're going to get a 3-4% premium for converting the voting shares, and that is barely enough to pay the fund fees, and it could take a year or more.


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## Cal

Mason owns voting shares. They will get no premium when the non voting shares are eventually converted into voting shares. But they did make a butt load off of blocking the conversion this time around.

And I agree it eventually will go though. Telus seems very motivated to have this happen.


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## Cal

Mason wants premium set on voting shares.

http://www.theglobeandmail.com/glob...for-telus-voting-shareholders/article4459386/


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## doctrine

The premium has stayed around 2.5%. Would be interesting if it changed. However, it has definitely been lower than it used to be, which may mean most investors don't believe there is a large premium inherent in the voting shares.


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## victag

Anyone know why the 2% drop in Telus today? not a typical day


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## doctrine

Mason Capital finally fleeing for the woods? Who knows.


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## Argonaut

I received my voting package today for the share merger. It's interesting to read over, as the majority of the text is spent on Mason Capital. It's gotten personal. Voted by proxy FOR the merger, as all of you with Telus shares should do. My shares represent one out of every 4 million votes, which is more weight than a political election!


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## doctrine

I am pleased that my non-voting shares have closed the premium to within 0.7%. This only makes sense, as a more liquid stock is more than worth it. Makes it easier for issuing shares or buying back stock as well. Simpler is better.


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## hboy43

Argonaut said:


> Voted by proxy FOR the merger, as all of you with Telus shares should do. My shares represent one out of every 4 million votes, which is more weight than a political election!


Well, I own 700 voting, 400 NV, so not in my interest to vote for. The way I see it is that it will be about 300 *$2/sh = $600 THEFT of my economic interest.

hboy43


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## Argonaut

hboy, you have $67k in Telus and thus a heavy weighting as an owner. Why would you want to stop your own company from doing what it wants to do? And I fail to see where it's not in your interest.. the non-voting shares you own will become voting and will reach up to the premium price.

Think of it like this. You have 7 gold coins and 4 silver coins. Someone offers to exchange your 4 silver coins for 4 gold coins. But you decline, because you originally have a higher weighting in gold. What? Now I'm even confusing myself.


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## Eder

A reasonable way for Telus to combine both share types if they were really on the level would be to either issue a special dividend to voting shares before combining the 2 or issuing like .96 voting shares for each non voting. Just going ahead with combining the two share types at par show little interest for shareholders & make me nervous.


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## Dmoney

Argonaut said:


> hboy, you have $67k in Telus and thus a heavy weighting as an owner. Why would you want to stop your own company from doing what it wants to do? And I fail to see where it's not in your interest.. the non-voting shares you own will become voting and will reach up to the premium price.
> 
> Think of it like this. You have 7 gold coins and 4 silver coins. Someone offers to exchange your 4 silver coins for 4 gold coins. But you decline, because you originally have a higher weighting in gold. What? Now I'm even confusing myself.


As far as I know, the difference is that the exchange of 4 gold for silver coins doesn't change the value of one gold coin. In the case of the Telus shares, the non-voting shares increase in value at the expense of the voting shares. It might be a slight net benefit to the overall market value of the aggregate shares, but from what I know, the voters lose. Haven't followed it that closely so I might just be imagining things.


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## Eder

Just a reminder dont forget to vote your shares...after all you paid a premium to buy voting shares unlike most of Telus managment...

http://www.theglobeandmail.com/glob...e=+20121005&archive=bwire&slug=20121005005600


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## Argonaut

What a hypocritical letter by Mason Capital. They don't give two licks about being a shareholder and are only in it for the attempted arbitrage.

You can play TheoryCraft all you like with the difference between the share classes and what it means, but it doesn't matter much at all in the long run with the prospects of Telus as an investment. If one is onboard with blocking a proposal that their own company is going through with, then perhaps it's time to hit the sell button instead.


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## doctrine

The real irony is if they just bought the voting shares and didn't short the non-voting one, they would have made a lot of money on the share appreciationin the last year, and they potentially could have made the argument as a pure voting owner for a premium on top of it. They've done everything exactly backwards.


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## Eder

I wasn't telling anyone how to vote their shares,but I suspect most that hold voting shares will vote to get full value from them,and those that hold non voting will vehemently criticize anything other than 1 for 1.


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## dubmac

I own Telus (T - voting) shares and have been "dripping them" over the past several years, and the dripped shares are non-voting T.A shares. 
Does anyone know what is going on wrt the Mason Capital vs Telus battle to merge the two T and T.A into one share structure? I see new a entry in my account listed as "TELUS - Temporary" - but these shares have no value..yet. I presume that after the vote on Oct 17th, that the non-voting and voting sharesw will be merged into this new account? And does anyone know what the impact the move by Mason (see article below) will have on all of this?

http://www.theglobeandmail.com/repo...-battle-with-telus/article4609449/?cmpid=rss1


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## Eder

Well it looks like they may get a delay in the proposed 1 for 1 share exchange. It boggles my mind that Telus management is trying to ramrod things when shareholders to which they are allegedly accountable to are not on board. I agree that Mason Capital is short term on Telus, but they do own 20% and therefore should have their say. (and I own a few thousand but don't want to get ripped off either)


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## dubmac

Feb 4th - Telus non-voting (T-A) and Voting (T) will merge. Telus (T-NYSE) will begin trading on the NYSE - replacing T-A.


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## Cal

It's about time they came to an agreement.


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## doctrine

Glad I've been loading up on T.A over the last several years  Still has a 4% yield and many years of 10% annual dividend growth ahead.


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## Cal

Curious to find out if a stock split is in the near future or not, now that the Mason stuff is dealt with. Share price appreciation has driven it to my lowest dividend payer based on current prices.

Dividend was just increased for the last payment, so I don't expect another increase for at least another Q or 2.


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## physik3r

*TELUS Announced 2:1 stock split*

http://www.newswire.ca/fr/story/1129261/telus-announces-two-for-one-stock-split

I recall someone predicting this on the board but can't remember who...


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## Ethan

I have a question for the option gurus on here. Do splits affect options the same way as shares? For instance, I sold one 08/17/2013 $66 put on Telus. When the share split occurs, will I become short two 08/17/2013 $33 puts?


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## humble_pie

Ethan said:


> I have a question for the option gurus on here. Do splits affect options the same way as shares? For instance, I sold one 08/17/2013 $66 put on Telus. When the share split occurs, will I become short two 08/17/2013 $33 puts?


not a guru here ... but, yes, exactly.

occasionally when i have say 10 short contracts & the underlying stk is splitting, i will hurry up & roll them prior to the split - if numbers & greeks are favourable - just so i can trade 10 plus 10 contracts for less commission than what i'd have to pay post-split to roll 20 plus 20 ...


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## Ethan

humble_pie said:


> not a guru here ... but, yes, exactly.
> 
> occasionally when i have say 10 short contracts & the underlying stk is splitting, i will hurry up & roll them prior to the split - if numbers & greeks are favourable - just so i can trade 10 plus 10 contracts for less commission than what i'd have to pay post-split to roll 20 plus 20 ...


Thanks.

I never thought about the increased commission. I might buy the put back today, the current ask price is 41% of what I sold it for.


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## humble_pie

you could buy but what would you sell, one of the jan/14 puts?


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## none

I was going to dump this stock because I was going to go full ETF. Maybe I'll just pull a Fonz and sit on it.


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## physik3r

Curious - why do you think this is more valuable now that it is split? Some would argue that the price becomes more attractive to certain investors but it really doesn't change much


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## none

I don't - I just think it's a low risk stock and it has a pretty low dividend relative to it's price. I think they will introduce a dividend bump once the the stock splits due to the improved liquidity of the stock.

I have no idea what I'm talking about.


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## Ethan

humble_pie said:


> you could buy but what would you sell, one of the jan/14 puts?


I wouldn't sell anything, I'm looking at taking funds out of my margin account to fund a different investment. Need to buy back some puts before I can withdraw any cash.


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## doctrine

Gotta live this split. First my non-voting shares are converted to voting, now I'm going to get 2 for 1.


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## humble_pie

i was just looking to see how stephen jarislowsky - known as the warren buffett of canada - has been updating his views on stock splits over the years.

originally, i've read that jarislowsky did not favour stock splits because they would, he said, usher in the passage of stock from strong institutional hands to weak retail hands. So i thought he had a point there.

but in recent years it appears he's come to favour splits in strong stocks because over a very long period of time - as in a lifetime - they offer up proof of a successful & growing company. So if i held telus stock, i think i'd go with that.

big congrats to all those who started out with T.A.


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## jcgd

Humble, that somewhat makes sense, but at the same time you could look at Berkshire and see that it went from $25/ share to $130000. What's the difference if it splits or not? I'm talking about total return, not whether the stock is ideal for retail investors or traders. What is the proof exactly? Is it just that a company has splits in its past so it's worth more that before those splits?

I can't see the logic in only buying stocks in a certain dollar range or favoring splits. Personally, I find it more of a pain to carry around 20 loonies than 10 toonies.


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## My Own Advisor

Congrats holders of T.A. Well played.


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## Argonaut

One benefit is that it's easier to synthetically DRIP a share if one so chooses. For instance, my 100 shares cannot quite DRIP a share currently, but my 200 shares will be able to.


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## jcgd

Argonaut said:


> One benefit is that it's easier to synthetically DRIP a share if one so chooses. For instance, my 100 shares cannot quite DRIP a share currently, but my 200 shares will be able to.


Hmm. Quite... I didn't think of that. Any other reasons? Maybe I should start a separate thread for this.


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## My Own Advisor

200 shares, nice, another bonus for sure. Not quite there yet myself.


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## Sampson

humble_pie said:


> i was just looking to see how stephen jarislowsky - known as the warren buffett of canada -


I thought that was Prem Watsa.


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## humble_pie

Sampson said:


> I thought that was Prem Watsa.



all his life stephen jarislowsky was beloved to & adored by journos, because he was such a bold, captivating, fascinating interview subject. If you were lucky enough to get to do a story on jarislowsky, you knew upfront you'd get material that was sprightly & controversial.

i remember diplomatically omitting from my small story something jarislowsky said about a prominent judge in the community. It was a slightly outrageous statement that was not integral to the story, so i left it out.

later a natpost journo would tell me that the natpost always did the same thing. Every time mr jarislowsky would put a word or even a comma over the boundary that might introduce a whiff of slander, the journos would, if the remark was not integral to the story, instinctively move to close ranks & protect him.

by contrast, prem watsa was always known as anti the 5th estate. Unreachable, uncommunicative, secretive, extremely difficult, sometimes even absurdly difficult, for his shareholders to follow.


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## none

Dumped my telus today at $69.75. It's good to be free.


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## My Own Advisor

Really none? Selling high and buying after split?


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## none

My Own Advisor said:


> Really none? Selling high and buying after split?


No, people will probably shake their heads at this reasoning but I'm just getting out of holding individual stocks -- too much drama for me.

Including dividends I'm probably up 150% on that stock so I'm just calling it a day.

Not really a great reason but it just makes it simpler for me.


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## 1sImage

Quick question. The stock split is on April 15... so if you buy now it will split? 
Or did you have to own stock the day it was announced?


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## doctrine

Yes, if you buy it now it will still split. Split adjusted price will be around $35 and it's still on the market at $70.


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## 1sImage

In with 143 @ 69.80


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## My Own Advisor

Nice 1sImage!

@none, no, you're not crazy. Are you going to put the monies into ETFs instead?


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## none

Yes. I find this single stock watching way too distracting and exhausting. I also dumped my EMA the other day - looks like I dumped it at peak, already down $1 a share.

I do see value in buying single stocks (the top ten in some of these ETFs for example) but the management fees of these ETFS are usually so low (0.15) that it's quibbling over pennies I think.


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## dubmac

http://www.theglobeandmail.com/report-on-business/telus-hot-on-bces-heels/article10645959/
Telus to move ahead of BCE in wireless subscribers! RCI (Rogers) still at no.1. Makes me wonder what's in store for BCE - can they stay competitive? if not, what of their distribution etc.


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## indexxx

*Telus*

Looked through a bunch of pages and couldn't find the Telus thread although I know it's here somewhere. 

Currently getting close to 12-month lows. Anybody picking up?


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## kcowan

The stock might be depressed by the prospect of Verizon entering the market. Verizon has an ARPU of $44 whereas Telus is $68.


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## dubmac

indexxx said:


> Looked through a bunch of pages and couldn't find the Telus thread although I know it's here somewhere.
> 
> Currently getting close to 12-month lows. Anybody picking up?


Be careful with Telus - I posted this news article on a different thread. It may be of interest to you in whatever decision you make regarding T. 
http://www.theglobeandmail.com/glob...hree-face-big-hit-in-verizon/article13651624/


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## fatcat

i have bce and telus
and i think we are all trying to decide if we should cut and run
but even if verizon enters canada (i know that i dutifully wrote my letter to the pm saying "at least don't offer verizon any cheap spectrum")
it will take years and many pitched battles before it all shakes out
and you would assume that the telcos will do everything in their power to remain solid dividend payers

though i am tempted to sell one and keep the other just to hedge my bets
there are predictions for huge losses if verizon does indeed make the move


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## marina628

I bought VZ a couple months ago counting that they do get in and sold all my T and BCE last year.I cant believe what I pay for cell phone service on a family plan here compared to what my sister in law pays for her service in Florida .Remember the $1 a minute we all paid in long distance fees in mid 90s until competition came in ,we need more of that.


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## Cal

I am not expecting Verizon to have lower phone rates, I am expecting lower prices on devices from them.


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## doctrine

Telus profit up 14%, raises dividend by 5.8%; the ~6th dividend increase in the last 3 years which has seen it increase exactly 50% from 24 cents in 2010 to now 36 cents (post-split). The best part is that the payout ratio is still just 65% even with the much higher divdend. Of course, they bought back $2B worth of shares - nearly 10% of the company, making it easier to pay those dividends. 

http://www.4-traders.com/TELUS-CORP...t-profit-rise-on-wireless-TV-growth-17444033/


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## My Own Advisor

Works for me  Thanks for sharing doctrine.


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## dubmac

My Own Advisor said:


> Works for me  Thanks for sharing doctrine.


me too.
this stock has been a very solid performer. Only one real "blip" - that was the Verizon threat - has interfered with it in the last 3 yrs!


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## My Own Advisor

I appreciated that threat. I bought more.


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## Cal

CEO change details:

http://business.financialpost.com/2...s-down-joe-natale-takes-helm/?__lsa=71e8-5432


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## doctrine

Telus is definitely expensive here. My last buy was at $30.69. Even at 10% div growth/year, you're still only looking at 4.5% yield in 2016 and you used to be able to buy them at 4.5% yield on the spot, not wait 2-3 years.


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## Eder

But Telus certainly is a much different company than it was only 5 years ago. A lot of future growth built into its price today.


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## dubmac

Cal said:


> CEO change details:
> 
> http://business.financialpost.com/2...s-down-joe-natale-takes-helm/?__lsa=71e8-5432


Telus ruffled some feathers when they announced their CEO was "stepping down" - Enwhistle may no longer be CEO, but he has not really relinquished any grip on power or decision making.


http://www.huffingtonpost.ca/2014/03/31/darren-entwistle-telus-ceo-resigns_n_5062087.html

Some observers say that Natale has better "soft skills" in negotiating (with Ottawa) and CRTC and that the move was simply a way to put a new face in the CEO seat, while Enwhistle takes on other tasks and strategy that is not in the public eye as much.


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## leeder

I find it interesting that Natale will remain in Toronto, even though the headquarters is based in BC. I wonder if it's Telus's plan to go head-to-head with BCE/Rogers in provinces such as Ontario. After all, and I could be wrong, even though Telus is national telecom company, their business is more mature in Western Canada (BC and Alberta).


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## Cal

I have no doubts they have their sights set on the population dense windsor-quebec city corridor for subscribers.


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## doctrine

Telus dividend increase of 5.6% (to 38 cents from 36 cents). Telus is up a solid 30%+ since last June when the rumours about Verizon were around. With EPS of $0.61, the dividend payout ratio is dropping on Telus thanks to all of the shares they are buying back. They look very much on track for 10% annual dividend increases until 2016, which is their guidance.


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## fatcat

doctrine said:


> Telus dividend increase of 5.6% (to 38 cents from 36 cents). Telus is up a solid 30%+ since last June when the rumours about Verizon were around. With EPS of $0.61, the dividend payout ratio is dropping on Telus thanks to all of the shares they are buying back. They look very much on track for 10% annual dividend increases until 2016, which is their guidance.


they are upping their game too ... i use them for my not well used second cell phone and have found their customer service to be extremely good lately


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## Synergy

I just wish I would have bought more. It's been a nice run since the Verizon scare.


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## Taraz

Telus, Bell, and Shaw are all down today. Apparently the Wind acquisition hurts everyone.


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## Eder

Taraz said:


> Apparently the Wind acquisition hurts everyone.


Or provides opportunity for investors.


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## keepathomas

is it time to buy? would you buy shaw or telus more?


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## godblsmnymkr

ya I added Telus to help my cost basis. its @ tested long time support.


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## Taraz

Yeah, I already did buy more Telus. There's no way it can hurt everyone.


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## 0xCC

Also, it isn't like this is a new entrant into the Canadian market. Shaw just bought an existing player in the market, it isn't like more spectrum was suddenly opened up or a bunch of unused cell towers suddenly got powered up.

Personally I bought more BCE and RCI.B today. I wish I would have bought Telus years ago and if I had I probably would have been buying more of it today as well.


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## Killer Z

0xCC said:


> *Also, it isn't like this is a new entrant into the Canadian market. Shaw just bought an existing player in the market, it isn't like more spectrum was suddenly opened up or a bunch of unused cell towers suddenly got powered up.*
> 
> Personally I bought more BCE and RCI.B today. I wish I would have bought Telus years ago and if I had I probably would have been buying more of it today as well.


You nailed it. The market is overreacting, and I see this as a buying opportunity. Just my $0.02.


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## mrPPincer

I added just now @37.82, thanks to this thread, otherwise I'd of had no idea as I was out doing yard work all morning.
3% off the low of $36.74 earlier today, oh well, ya snooze ya lose :smilet-digitalpoint


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## besmartrich

Telus was downgraded from buy to hold. It would be a good time to get on it~


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## dubmac

true - price has dropped. But I do not expect significant growth going fwd - dividend has been very good.


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## ct809

0xCC said:


> Also, it isn't like this is a new entrant into the Canadian market. Shaw just bought an existing player in the market, it isn't like more spectrum was suddenly opened up or a bunch of unused cell towers suddenly got powered up.
> 
> Personally I bought more BCE and RCI.B today. I wish I would have bought Telus years ago and if I had I probably would have been buying more of it today as well.


Yea but Shaw's CEO was quoted as saying they won't be a discount carrier and their prices would align with the incumbents. Along with the eventual LTE rollout by WIND it sounds like they're targeting the incumbents and not going for WIND's lower tier customers?


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## doctrine

Big buying opportunity for Telus in particular. Basically hit a 2 year low today before rebounding.


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## AltaRed

Chagrin. I just bought Telus a few days ago at $39.xx (forget exactly). However, this too will pass.


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## fatcat

doctrine said:


> Big buying opportunity for Telus in particular. Basically hit a 2 year low today before rebounding.


i sold my shaw some months ago and have telus and bce
i like shaw and am a customer, i think they have a great product but worry about all the shaw family at the top
will add some telus for sure and maybe a bit of shaw
i really need a telco-cable etf since i think owning them all mitigates disruption risk going forward which will be significant i think


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## londoncalling

Totally missed this one due to trying to get things done at work before the year end. I don't have a Canadian Telco (hold American and European telcos)and this seems like a good entry for a long term hold. Will put in an order for the week. Have some cash to allocate before the year end. 

Cheers


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## jargey3000

.....time to stop drinkingi guess...I saw this thread & thought the title was *Telus T and A* !!! ....hic!


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## godblsmnymkr

http://seekingalpha.com/pr/15717226...ase-10-million-in-telus-shares-in-open-market


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## fatcat

godblsmnymkr said:


> http://seekingalpha.com/pr/15717226...ase-10-million-in-telus-shares-in-open-market


yeah, he appears to love his company and is a highly regarded ceo ... he was only taking a $1 salary at one point (along with plentiful options)


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## londoncalling

londoncalling said:


> Totally missed this one due to trying to get things done at work before the year end. I don't have a Canadian Telco (hold American and European telcos)and this seems like a good entry for a long term hold. Will put in an order for the week. Have some cash to allocate before the year end.
> 
> Cheers


Seems unlikely I will get this order filled this week. If the market is to remain flat in 2016 I may get another chance. Nonetheless, I am ok with my purchase of BNS this month. All the best to you and yours this holiday season and GLTA in 2016.

Cheers


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## KaeJS

Just bought some....

Who thinks this earnings report is going to be horrible on May 5?

So far, Shaw and Rogers posted less than expected earnings. BCE to report on the 28th...

Obviously their customer base is largely Western (Alberta, and we all know what happened to oil...) Stock has fallen $3+ dollars in 3 weeks.... that's over 7%. Stock has fallen 7.27% from March 31 to April 22. High of about $42.42 on March 31 and Low of $39.11 on Apr 22.

Current price is $39.40. 4.47% yield.
52 High: $45.19
52 Low: $35.51

Keep in mind, when Telus hit the "low" for the year, the entire market was in a slump. This was about mid-January 2016. As an example, BCE was under $54 and the entire TSX was low. Over the last 1 year, Telus has been over $40 10/12 of the time, or 5/6 of the time, or 83.3% of the time.

I'm just hoping to sell at $40.

What's everyone else's thoughts?
I'm not particularly bullish, but I'm not bearish, either. With the inevitable slight recovery in oil and the fact the stock has fallen 7% in 3 weeks... I'm in for a trade.


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## Eder

I added more Telus under $40 last week...I don't think I'll ever sell it. I like your trade though...the dividend will more than pay the juice from the brokerage till the market proves you right. 

I think Telus will surprise a bit on the upside. I don't think we'll see anything more than $42-$43 this year as the Shaw thing is dragging on their share price, and the riff raff are selling defense to load up on near bankrupt energy businesses. If oil drops $5-$6 I'm sure you will get your 10% profit.

I will be buying more this year under $40 if it gets rocky enough.


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## KaeJS

Well, damn, Eder.
You really do have to be one of my favourite members of CMF.

I agree with everything you said. It just makes sense.
I even agree that I think Telus might surprise a little on the upside, but of course this is more of a hunch..... However, they have the lowest turnover of all the Telecomms. They like to keep their customers which is a good thing. Also... I think that having a cell phone and all that is more of a staple in quality of life for Canadians. I find it hard to believe that someone who is in Alberta and has lost their job is calling up Telus to reduce their plans. More likely, they are buying groceries on sale and watching more television and looking for a new job.

I am hoping to make this trade relatively quick, though. I don't want to wait until June for that dividend. I want to be out much sooner than that. Ideally, I would like to be out before the earnings report, but that may or may not happen. I am hoping there is a little bit of a rally up before the earnings to get the stock back to $40.

I think the selling in the last 3 weeks has largely been for reasons that are not tied to Telus directly (i.e., other stocks surging, other telcos posting bad results, fear)


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## spongewen

also got some shares around $39.15, long time hold


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## hollyhunter

T.TO From the relationship between price and moving averages; we can see that: This stock is NEUTRAL in short-term; and BULLISH in mid-long term. Based on the P/E, it is undervalued. On watch for clear above 40.87


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## KaeJS

In for 500 @ 39.30.


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## blin10

sold all bce at the top, buying telus now, a sure winner to 1-2 year hold imo


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## KaeJS

Let's hope BCE puts out a good report tomorrow. I'm thinking they will. And if they do, Telus should increase in price.


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## Eder

How is $60 the top? Or you mean the top till summer? I remember reading posts when BCE was trading at $38 and that was the top as there was no further growth possible.


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## blin10

At the top = when it was at almost 52week high


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## KaeJS

=)

Glad to see that everything materialized as it should have.


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## KaeJS

Wrote my $40 calls today...


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## Mortgage u/w

Anyone buying or selling this stock? I am considering starting a position. Nice drop today down to $43.25. $40.00 seemed to be the breaking point but we're well past it. Anyone bullish here?


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## My Own Advisor

Very bullish long-term. I don't see millions of Canadians giving up internet or cell phones anytime soon


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## agent99

Mortgage u/w said:


> Anyone buying or selling this stock? I am considering starting a position. Nice drop today down to $43.25. $40.00 seemed to be the breaking point but we're well past it. Anyone bullish here?


I have owned Telus for quite a while and it has done well for us. There have been several articles and discussions about the potential growth of telecoms now that 7-11 year old kids "need" phones and that seniors, like myself are finally giving up on their fliphones and discovering data  This is no doubt correct, but perhaps some of this is baked in? We already have Tellus, BCE and Rogers, so don't intend adding to them. One thought would be to buy a potential take over target. I don't know who that might be. Anyone have any ideas?


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## Argonaut

Been holding for 6 years now, which is 20% of my life. Time keeps on moving, doesn't it?

Still like this one as one of the best names in Canada. A bit sideways in the last couple years but the dividend keeps increasing every 6 months. Happy.


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## dubmac

Argonaut said:


> Been holding for 6 years now, which is 20% of my life. Time keeps on moving, doesn't it?
> 
> Still like this one as one of the best names in Canada. A bit sideways in the last couple years but the dividend keeps increasing every 6 months. Happy.


Telus has been quite strong for me too - held since early 2010. Based on CEO's comment (below), one may get some increased $ in divvies going fwd. 

"Telus said it is targeting dividend increases in the range of 7 to 10 per cent for 2017." -


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## doctrine

More growth than BCE, but also more expensive. A nice alternative with less media risk. I wouldn't jump all in, though. 7-10% dividend increase is lower than the last several years, thus they are signalling slower growth and thus lower future returns. That is why the yield has gone from 3.5% to 4.5% over the last few years.


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## number12spicy

On my radar to buy in the coming year, they seem to be getting stronger in the West and can only go up in the East


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## bleagues

Anyone thinking of playing Telus with the upcoming spinoff(s)?

If one buys shares of Telus before the spinoff, will there be a share distribution to holders of Telus?


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## doctrine

No share distribution. Telus is selling some shares (~$100M worth) in the IPO but the main value is the 66% of the company they will own post-IPO, which should be worth about $4B vs $35B market cap of Telus. So it's a nice part of the company but still only just over 10%. 

Telus has just hit a new all time high. Just a nice slow and steady gainer. I've owned shares for over 10 years which I bought as low as $12 or so split-adjusted.


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## dubmac

why is telus introducing this IPO? What is the end game here - access to more capital? somehow leveraging the canadian market to other markets in other countries (US?)


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## agent99

doctrine said:


> Telus has just hit a new all time high. Just a nice slow and steady gainer. I've owned shares for over 10 years which I bought as low as $12 or so split-adjusted.


 Your post got me to check my Telus. Looks like I bought 200 in 2009 in Registered at $37.67. Two splits since them, so presumably my cost on that initial purchase was $9.42. I have added 300 since then. Brokerage shows my average cost is now $13.70. Also bought 500 in unregistered more recently. 

BCE still biggest holding in telecoms. Recently bought a small amount of T (US) in RRIF - same symbol, but different company! (AT&T)


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## Eder

dubmac said:


> why is telus introducing this IPO? What is the end game here - access to more capital? somehow leveraging the canadian market to other markets in other countries (US?)


I think that the value of Telus International is not currently reflected in Telus share price...I think this is their solution. I'd like Rogers & BCE to spin off their media companies in a similar fashion.


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## doctrine

Eder said:


> I think that the value of Telus International is not currently reflected in Telus share price...I think this is their solution. I'd like Rogers & BCE to spin off their media companies in a similar fashion.


They are almost certainly not fully reflected in Telus shares. They also have 2 other divisions - Telus Health and Telus Agriculture, which will probably see IPOs in the future. These are credible businesses and should be good moves for shareholders given they are not core telecom services.


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## milhouse

The G&M published a few articles over the last couple of days (and I threw in a FP one too) that did a great job explaining the reasoning behind the IPO. The analyst calls/Q&A during the last few quarterly reports had some good discussion on the IPO too. 
But it's basically what Eder and doctrine describe. The value of Telus International isn't reflected in the mothership share price and the division is now mature enough where they are ready to unlock the value. Rinse and repeat with Telus Health and Telus Agriculture. I don't think there's been a lot of discussion around what the plan is with the unlocked capital. My wild guess is for it to fund the delayed/upcoming spectrum auctions and get back closer to their net debt to EBITDA ratio range.









After years of operating in ‘stealth mode,’ Telus subsidiary prepares for initial public offering


Telus International shares expected to start trading in New York and Toronto by end of March, to capitalize on red-hot market for tech companies




www.theglobeandmail.com













Telus International looks to raise US$500-million in IPO


The Telus subsidiary is expecting to price its IPO at between US$23 and US$25 a share, which would value the IT and business services company at more than US$6-billion




www.theglobeandmail.com













Opinion: Telus’s IT gamble proves to be winning play for Entwistle


While other telecom companies embraced m edia tie-in strategies, Vancouver-based firm’s CEO pivoted to tech




www.theglobeandmail.com













Telus International prices public offering in bid to expand digital business


Telus International expects to price its shares between US$23 and US$25 each on the New York Stock Exchange




financialpost.com


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## dubmac

Make me wonder about the impact of Starlink on internet subscribers.








Starlink satellite internet grants instant sign-up for eligible Canadians | IT World Canada News


Some Canadians can now immediately sign up for Starlink's satellite internet service.




www.itworldcanada.com




Not sure, but aren't Canadian telcos a bit nervy when Elon's company delivers headlines like this?
I think Entwistle (Telus CEO) is looking to diversify, and reduce the dependence on internet and wireless customers. I think his International IPO's are designed to add more cash cows that are not drawing from the same customer base as their peers (BCE, Shaw, rogers). If I was CEO for Shaw, I'd be nervous.


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## agent99

dubmac said:


> Make me wonder about the impact of Starlink on internet subscribers.


Not sure what this means. 



> The license allows SpaceX to provide telecommunication services in Canada but does not allow it to operate as an internet service provider within the issuing nation.


If they can't operate as an ISP, what do they offer?


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## doctrine

dubmac said:


> Make me wonder about the impact of Starlink on internet subscribers.
> 
> 
> 
> 
> 
> 
> 
> 
> Starlink satellite internet grants instant sign-up for eligible Canadians | IT World Canada News
> 
> 
> Some Canadians can now immediately sign up for Starlink's satellite internet service.
> 
> 
> 
> 
> www.itworldcanada.com
> 
> 
> 
> 
> Not sure, but aren't Canadian telcos a bit nervy when Elon's company delivers headlines like this?
> I think Entwistle (Telus CEO) is looking to diversify, and reduce the dependence on internet and wireless customers. I think his International IPO's are designed to add more cash cows that are not drawing from the same customer base as their peers (BCE, Shaw, rogers). If I was CEO for Shaw, I'd be nervous.


Starlink is good for sure, but will not be as competitive as you think with fibre internet, especially in high density cities and buildings where internet companies get the majority of their services. Starlink may eliminate the need for costly rollouts to rural areas, and may offer some competition, but again I don't think it's the end all. And it remains to be seen how many people are willing to take their chances with direct weather effects and overuse on what is essentially a giant shared bandwidth in local areas on their internet service, which is a thing with satellite. And it's almost certainly more expensive with the home receiving station, and those stations will have an effective lifespan as well. Someone like Shaw certainly has to be more worried because they are behind on their quality of wireless/cell service. Less of a concern with T/RCI/BCE with their bundling especially into 5G.


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## Eder

I'd like to get an in motion antenna for Starlink for my boat but it seems Starlink is Geo locked...you cant go anywhere with the antenna like sailing or camping or to Mexico etc.

I think the cost is high if you figure in the antenna plus $129/month. Being geo locked really sucks as that would be it strongest point.

Unless that drops to free antenna and $60/month there's no point unless you live in the sticks, which the big 3 really don't want to supply with broadband anyway. 

I wonder if there will be satellites servicing the middle of the Pacific like Iridium does?


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## milhouse

Somewhat similar to doctrine's comment, I don't think low orbit satellite internet is a threat to the telcos' core high population density customer base covered by fiber/coax delivering gig Internet. Everyone's (Shaw, Telus, Bell, Rogers, Quebecor, etc) strategy seems to be to deliver a high speed pipe into the home and deliver additional services like tv and security. In Shaw's quarterly calls, they talk about targeting high value customers that they can bundle a full premium tv and internet package and throw in wireless. This customer base won't be threatened by low orbit satellite internet. 
However, in explaining why they were getting smoked by telus' net internet adds, Shaw mentioned a segment of internet adds that they can't compete with Telus on is fixed wireless internet because they don't have the spectrum to offer that product. I think this remote customer market of telus' might be threatened by Starlink. However, the market likely isn't that large and who knows how competitive the pricing and quality would be versus the fixed wireless service.


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## Money172375

Telus International (TIXT) expected to begin trading today.










TELUS International announces pricing of upsized initial public offering


VANCOUVER, British Columbia., Feb. 03, 2021 (GLOBE NEWSWIRE) -- TELUS Corporation (TSX: T; NYSE: TU) and its subsidiary, TELUS International (Cda) Inc....




www.globenewswire.com


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## Gumball

Money172375 said:


> Telus International (TIXT) expected to begin trading today.
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> TELUS International announces pricing of upsized initial public offering
> 
> 
> VANCOUVER, British Columbia., Feb. 03, 2021 (GLOBE NEWSWIRE) -- TELUS Corporation (TSX: T; NYSE: TU) and its subsidiary, TELUS International (Cda) Inc....
> 
> 
> 
> 
> www.globenewswire.com


As a Telus shareholder Im not sure how to feel about this spin off... If I am reading this correctly - before the spinoff as a Telus shareholder I owned 100% of these companies theyre spinning off under the Telus umbrella. Now my ownership is down to 2/3rd without anying in return as a Telus shareholder.. am I looking at this the right way??


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## Argonaut

Gumball said:


> As a Telus shareholder Im not sure how to feel about this spin off... If I am reading this correctly - before the spinoff as a Telus shareholder I owned 100% of these companies theyre spinning off under the Telus umbrella. Now my ownership is down to 2/3rd without anying in return as a Telus shareholder.. am I looking at this the right way??


Well, from what I'm reading Telus got $1 billion to pay down debt or fund growth or whatever. And the parent retains 2/3 of Telus International? Sounds good to me as a shareholder. Also probably not a bad idea to IPO in a frothy market.


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## doctrine

Gumball said:


> As a Telus shareholder Im not sure how to feel about this spin off... If I am reading this correctly - before the spinoff as a Telus shareholder I owned 100% of these companies theyre spinning off under the Telus umbrella. Now my ownership is down to 2/3rd without anying in return as a Telus shareholder.. am I looking at this the right way??


Telus now owns 2/3rds of a $10 billion dollar company. They created nearly $7 billion dollars of wealth from an internal business line that wasn't even recognized as existing. Telus is a big company but only $35 billion in market cap - $7B of that now being Telus International. If they sold their remaining stake for cold, hard cash, it would be 56% of their book value. It's a good move, and Telus stock is now at a new all time high. It's hard to argue with success.


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## gibor365

Is anybody was able to get TIXT from IPO for $25? I ordered shares on Jan 26 (1st day) and got ... nothing.....


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## milhouse

I don't fully understand the IPO process but based on the reporting, it seems like the IPO was heavily marketed to institutional investors and demand was great enough for them to issue more shares than originally planned. Institutional investors likely grabbed the bulk of the issuance at $25USD so I'd think it would be difficult for retail investors to pick up shares at $25USD.


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## gibor365

milhouse said:


> I don't fully understand the IPO process but based on the reporting, it seems like the IPO was heavily marketed to institutional investors and demand was great enough for them to issue more shares than originally planned. Institutional investors likely grabbed the bulk of the issuance at $25USD so I'd think it would be difficult for retail investors to pick up shares at $25USD.


Retail investors are always got screwed ... My contact guy in CIBC Premium Edge told me that nobody from his clients got some shares


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