Getting into Telecommunications

When I adopted the Beating the TSX system for my equities, I did not have sufficient funds to buy all ten of the stocks in the system. The stocks in the system that I do not own are:

  • Telus (T.TO)
  • BCE (BCE.TO)
  • Husky (HSE.TO)
  • CIBC (CM.TO)

I now have some additional cash to contribute to my portfolio. I don’t really like Husky too much as a stock. Future earnings estimates are declining, and I already have two oil companies in the portfolio. Nor do I want to add CIBC. I already own BMO and two insurance companies, which I think is sufficient financial services exposure during the continuing European debt crisis. So, I’d like to use it to add the two telecommunications stocks.

  • BUY Telus @ $56.38
  • BUY BCE @ $40.25

The stocks in my portfolio now look like this.

Company PE Ratio PEG Ratio Dividend Yield
Canadian Oil Sands 10.57 2.5 4.81%
Enerplus 5.42 -0.48 9.20%
Power Corp 9.76 7.03 4.70%
Shaw 12.04 2.31 4.91%
Sun Life 668.33 0.11 7.18%
Telus 14.95 1.8 4.12%
BCE 12.74 4.07 5.14%
Royal Bank 11.39 1.54 4.10%
TransAlta 16.44 4.33 5.78%
TransCanada 18.44 2.27 4.01%

POSTMORTEM

One month after these trades they look OK. Telus is up 2% and BCE is flat: that’s an average gain of 1% in a month.

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