Recent Buy – BCE Inc.

BCE Inc
I initiated a new position in BCE Inc (TSE: BCE). BCE Inc. is a communications company but provides much more than that and has an expanding business in content providing and entertainment.

Segments

BCE Inc. operates in four segments:

  • Bell Wireline – the largest segment of BCE Inc. revenue-wise; provides local, long distance & data services to residential and business customers.
  • Bell Wireless – Cellphone services under the brand names of Bell Mobility, Virgin Mobile and Solo Mobile
  • Bell Media – created after acquiring CTV in 2011, this segment owns 28 TV stations including CTV, TSN, RDS etc. Bell Media also owns 33 radio stations and numerous websites in this segment.
  • Bell Aliant – provides local, long distance, internet, data, TV, wireless & IT services in Atlantic Canada, rural and regional Ontario & Quebec.

2012 Revenue Summary

Recent Acquisitions

BCE Inc. acquired Astral Media for $3.4B earlier this year (2013) which expands their horizons in content providing in television, radio and digital media. This acquisition complemented BCE’s existing media brands such as CTV, TSN, RDS and various radio stations.

Last year BCE Inc, along with Rogers Communications Inc., acquired MLSE – a holding company that owns Toronto Maple Leafs (NHL), Toronto Raptors (NBA), Toronto FC (MLS), Toronto Marlies (AHL) and the Air Canada Center in downtown Toronto. This has provided BCE with plenty of diversification in the sport and entertainment business.

Recent Buy Decision

BCE has had quite a selloff recently with the news that Verizon might enter the Canadian wireless market. The YTD stock price is just +2% after the selloff. From its 52-week high of $48.90, the stock has fallen almost 10%. Even if Verizon enters the market as a fourth major wireless provider, BCE is still very diversified and this provided a great buying opportunity.

A summary of the stock:

  • Symbol: TSE: BCE
  • Quote: $43.50
  • 52-week Range: $40.58 – $48.90
  • P/E: 13.53
  • P/B: 3.18
  • Yield: 5.36%
  • 5-yr DGR: 16%
  • Dividends paid since: 1949

Disclaimer: The information provided here is for educational purposes only. All opinions here are my personal opinions and should not be taken as financial advice. I am not qualified to be a financial advisor. Always consult with your financial advisor before investing in any of the companies mentioned on this blog.

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