Rogers Communications (Symbol-RCI.B)

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zaman
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Post by zaman »

Roger's takes on new role

I'm not sure if I like this idea...there could be some friction.
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Post by parvus »

Or does the strategy become growth by M&A?
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Post by investor99 »

Today's results look strong.
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Post by Peculiar_Investor »

Rogers got quite the pop this morning, RCI.b is up about 7% this morning. :D

Is this just reaction to the Globalive CRTC ruling or is there other news out there? I see that both Telus and BCE got a pop this morning which makes me think it is related to the CRTC ruling.
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Post by investor99 »

Peculiar_Investor wrote:Rogers got quite the pop this morning, RCI.b is up about 7% this morning. :D

Is this just reaction to the Globalive CRTC ruling or is there other news out there? I see that both Telus and BCE got a pop this morning which makes me think it is related to the CRTC ruling.
I saw that too, surprising how much RCI.B is up due to the CRTC ruling.
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Post by zaman »

My thinking is that Roger's has the most to lose from new wireless competitors owing to their higher ARPU (revenue per user) than Bell or Telus.
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Post by Bylo Selhi »

However the fat ladies (in cabinet) have yet to sing. They sang in favour of furriners in the Nortel asset sale so, if they remain true to their principles (!), they should side with Globalive. Then again, Robbers, Hell and Trickus have more powerful lobbyists than Nortel and RIM.

And of course, there's also Dave, Videotron et al.
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Post by ghariton »

Bylo Selhi wrote:they should side with Globalive
Perhaps. Unfortunately the law, as I read it, requires Globalive to be denied a license. The law is stupid in the extrreme, but then you wouldn't want Harper to go against the law, would you? :twisted:
Then again, Robbers, Hell and Trickus have more powerful lobbyists than Nortel and RIM.
The effective lobbyists in this case are the broadcasters, ACTRA, et al. Allowing foreign ownership of telecom service providers is a first step down the slippery slope to unfettered access to foreign content. And if Canadians get unfettered access to foreign content, they will stop watching Canadian content -- thus proving just how bad Canadian content is -- or at least how bad Canadian broadcasters and producers perceive it to be. :twisted: :twisted: :twisted:
there's also Dave, Videotron et al.
Yes, thank goodness.

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Post by Bylo Selhi »

ghariton wrote:The law is stupid in the extrreme, but then you wouldn't want Harper to go against the law, would you? :twisted:
Why not? He's already done it on several occasions. Worse, his poll numbers keep going higher every time he does :shock: :twisted:
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Re: Rogers Communications (Symbol-RCI.B)

Post by Peculiar_Investor »

Globalive is alive, Industry Minister Tony Clement rejects regulatory decision on ownership and allows upstart player to offer services. Clement's press conference was at 8:30 EST this morning, so I'm sure this news will continue to break. Meanwhile, I'd expect Mr. Market may hold a pre-Christmas sale today on RCI.b, T and BCE.
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Re: Rogers Communications (Symbol-RCI.B)

Post by CROCKD »

I think most people(although probably not all investors) think that there needs to be more competition in the mobile market. What I find interesting is the government spin put on this decision.
“The decision to vary the CRTC Globalive decision, let me emphasize, was based on the legal facts and not on the government's position that there needs to be more competition in the marketplace,” Mr. Clement said.
Also the company probably pulled in some brownie points with their use of hired employees to man Salvation Army kettles as volunteers.
Globalive had 800 employees in Toronto and Calgary who had finished training and were waiting to start the wireless business, but ended up doing volunteer work while collecting their salaries after the launch was put on hold.
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Post by ghariton »

Bylo Selhi wrote:Why not? He's already done it on several occasions.
Turns out you're right. You're obviously smarter than I am.

Wonder if there will be an appeal to the courts? Nah. Some more spectrum auctions are coming up and they wouldn't want to piss off the government.

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Post by Bylo Selhi »

ghariton wrote:
Bylo Selhi wrote:Why not? He's already done it on several occasions.
Turns out you're right.
While I was alluding to stuff like legislation to fix election dates (maybe I didn't appreciate the sense of the word "fix" that Steve meant), it seems even Steve's crowning achievement (i.e. what put him in 24 Sussex), the Accountability Act, isn't worth the paper it's printed on.

Globalive lobbyist former PM adviser [my bold]
Telecom company Globalive hired a lobbyist who is a former senior adviser to Prime Minister Stephen Harper to help convince cabinet to overturn a ruling by Canada's telecommunications regulator.

The Toronto-based company made the move after the Canadian Radio-television and Telecommunications Commission ruled in late October that it wasn't Canadian enough to own a wireless network.

The government's decision yesterday to overrule the CRTC came after Ken Boessenkool met with the chief of staff, the director of policy and then the policy adviser at Industry Canada.

He also met with Sean Speer, a policy adviser for the Prime Minister's Office.

According to his biography on GCI Group Canada's website, Boessenkool was "senior policy adviser and strategist to Conservative Party of Canada Leader Stephen Harper" and "played senior strategic roles in the 2004 and 2006 Conservative campaigns."

[Cue Smilin' Jack ;)] "The notion of ex-staffers becoming lobbyists and then ultimately influencing the government on key decisions was something that Mr. Harper used to rail against," said NDP Leader Jack Layton. "It looks like the government may have been under pressure to move on this one case from a very good friend."
You're obviously smarter than I am.
No, just a tad more cynical about Steve's promises to "Reform" Canada.
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Re: Rogers Communications (Symbol-RCI.B)

Post by mpav »

Interesting saga, and seems like there will be tidbits in the future...Globealive is a slick operation that seems to get what it wants, and is just a marketing machine.

But whatever comes out, and if there was illicit dealings, it will all be too late as the upstart would have been up and running for some time.

BTW - I did try and find out if I could by a phone from these guys (my sleuthing), no luck in finding a place yet...
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Re: Rogers Communications (Symbol-RCI.B)

Post by Peculiar_Investor »

Rogers Added to Goldman ‘Conviction Sell’ List on Slower Growth which is probably consistent with other analysis' view that a dividend increase is coming. After all if growth is slowing, then shouldn't companies be paying out more of their cash in the form of dividends?

I'll leave it to others to decide whether to follow Goldman's advise or to decide that this is a contrarian indicator. I'm planning to stay long Rogers as I feel they are well positioned in the Canadian marketplace and the dividend pays me nicely for waiting.
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Re: Rogers Communications (Symbol-RCI.B)

Post by mpav »

Eeek, that is pretty bold sell call and GS carrys a lot of weight (especially considering it is not a well traded listing in NY)

Lets see how the market responds...
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Re: Rogers Communications (Symbol-RCI.B)

Post by Shakespeare »

GS carrys a lot of weight
I'd be a lot more interested in their private calls than there public ones....
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Re: Rogers Communications (Symbol-RCI.B)

Post by investor99 »

Goldman's wrong Rogers is a winner in the mid and long term.
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Re: Rogers Communications (Symbol-RCI.B)

Post by brad911 »

Rogers has a diversified revenue stream; bottom line. While one might suffer the others will likely do well as this is how the business was built by Ted. Over the long-term the specific concerns the market has with one or two of its segments isn't a concern to me because I own the company for its exposure to not just telecommunications and cable.
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Re: Rogers Communications (Symbol-RCI.B)

Post by Spidey »

Rogers will probably continue to be a reasonably stable stock for a while, but the growth days are probably over. I would watch for innovations with internet television and movie downloads. If my teenagers and their friends are any indication, broadcast television is dying -- downloading is in. Of course, even if this type of thing takes off, Rogers may benefit from being an internet provider, but it will likely take quite a bite out of the cable television specialty channels and packages, not to mention Rogers video stores. And then if we add in competition on the cell phone and internet side of things, I would be reluctant to dedicate a large portion of my portfolio to Rogers.
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Re: Rogers Communications (Symbol-RCI.B)

Post by JaydoubleU »

Hmm. Profit up, 10% dividend increase, 1.5 billion share buyback program announced....

Did not enough new wireless customers justify a 4.5% plunge?
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Re: Rogers Communications (Symbol-RCI.B)

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JaydoubleU wrote:Hmm. Profit up, 10% dividend increase, 1.5 billion share buyback program announced....

Did not enough new wireless customers justify a 4.5% plunge?
From the press release:
Adjusted Operating Profit up 14% as Revenue Grows to Over $3 Billion and Margins Expand in each of Wireless, Cable and Media;
Wireless Data Revenue Growth Continues to be Robust at 45%;
7% Increases in Wireless Network and Cable Operations Revenue Combine with Cost Reduction Initiatives Drive Adjusted Operating Profit Growth of 16% and 8%, Respectively;
Increases in TV Advertising and The Shopping Channel Sales Combined with Cost Reduction Initiatives Drive 13% Adjusted Operating Profit Growth at Media
(Whatever "adjusted operating profit" means.)

I'm sure the usual financial analysts will have deep insights tomorrow. :wink:

With results that are this good (at least I understand what "revenues" mean) leading to a drop in share price, I'll be really interested to see what happens to other telecom players after they announce.

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Re: Rogers Communications (Symbol-RCI.B)

Post by Peculiar_Investor »

ghariton wrote:With results that are this good (at least I understand what "revenues" mean) leading to a drop in share price, I'll be really interested to see what happens to other telecom players after they announce.

George
FWIW, what other telecom players are you waiting for, BCE announced on Feb 4th, http://www.bce.ca/en/news/eventscalenda ... /20100204/ and Telus announced on Feb 12th, http://about.telus.com/investors/downlo ... Report.pdf
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Re: Rogers Communications (Symbol-RCI.B)

Post by Pickles »

JaydoubleU wrote:Hmm. Profit up, 10% dividend increase, 1.5 billion share buyback program announced....

Did not enough new wireless customers justify a 4.5% plunge?
I wondered about this, too. I had sold off my Rogers last week to lock in a gain, intending to reinvest the money in a stock earning a higher dividend. Yesterday, I bought it again when it dipped down below $33. Although it did not approach my previous purchase price, I was able to increase my yield by more than half a percentage point due to the combo of the lower price and dividend increase. I know I churn stocks too much (perhaps I'll give it up for Lent) but I've done quite well buying and selling Rogers in the past and the numbers released yesterday indicate some stability for the short term, at least.
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Re: Rogers Communications (Symbol-RCI.B)

Post by ThinkDividends »

"Still One of Our Favourite Picks For 2010: (1) 2010 guidance is conservative and quarterly results should beat expectations; (2) RCI has significant flexibilty to return cash; (3) share buybacks will resume later this week; (4) the underlying operating trends remain intact; and (5) RCI shares trade at a discount to peers."

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