2024-07-07 09:04:42 ET
Summary
- BCE is a leading telecommunications provider in Canada with a strong market share and a diverse media business.
- BCE's first-quarter results were steady and in line with analyst estimates. However, I worry about the effects of a deteriorating Canadian economy.
- Looking farther out, tightening immigration rules may curb the new customers in the wireless markets, leading to increased price competition between carriers.
- I am also worried that management has moved the goalpost on leverage, suggesting they do not have any plans to delever the business.
A few months ago, I wrote a bullish article on BCE Inc. (BCE), detailing three reasons why I added the Canadian telecom giant to my retirement portfolio. However, upon further reflection, I have changed my mind and sold my position for a small loss.
Normally, I am a long-term investor with a time horizon of at least a year, so this abrupt change of heart is highly unusual. In this article, I will go over the reasons behind my decision....
Read the full article on Seeking Alpha
For further details see:
BCE: Downgrade On Deteriorating Economy