T CN

Telus Corp

TMT


Presented:02/09/2016
Price:CA$39.67
Cap:$19.12B
Current Price:CA$22.24
Cap:$26.52B

Presented

Date02/09/2016
PriceCA$39.67
Market Cap$19.12B
Ent Value$29.57B
P/E Ratio16.81x
Book ValueCA$12.37
Div Yield4.44%
Shares O/S603.00M
Ave Daily Vol1,555,824
Short IntN/A

Current

PriceCA$22.24
Market Cap$26.52B
TELUS Corp. is a telecommunications company in Canada. It provides telecommunications and IT solutions for small to large businesses, including IP, voice, video, data and managed solutions, as well as contact centre outsourcing solutions for domestic and international businesses. The company operates through its business through two segments: Wireline and Wireless. The Wireless segment includes digital personal communications services, equipment sales and wireless Internet services. The Wireline segment includes voice local, voice long distance, data and other telecommunications services excluding wireless. TELUS was founded on October 26, 1998 and is headquartered in Vancouver, Canada.

Publicly traded companies mentioned herein: Rogers Communications Inc (RCI, RCI/B CN), TELUS Corp (TU, T CN),

Highlights

The presenter is short shares of Telus (T CN), expecting mounting pressures on both the wireline and wireless businesses. He believes multiples are currently inflated due to a “flight to safety” towards dividend paying large cap stocks, which creates an attractive entry point. In addition, he thinks T CN EBITDA growth could be flat or negative, as opposed to a modest growth (1% - 4%) by Street estimates. He believes investors will soon decide that T CN is too expensive at current levels, and expects T CN’s share price to decline consistently over the course of 2016.

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Idea Discussion

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