Telecoms look attractive

April 2, 20122 Comments


The Canadian telecom sector is trending up. Last year while the European crises raged on, telecom stocks barely flinched. Relative strength continues to be favorable as stocks rise. I’ve posted charts of  the big players; BCE, Telus and Rogers for comparison. BCE is currently consolidating after a strong year of growth, while Telus and Rogers are showing outperformance in the sector. Telus is trending the strongest and is supported by its 200 day MA, as is Rogers. Rogers has a fair bit of overhead resistance that will challenge it at $41 or so. Continued earnings performance will be necessary to drive Rogers through this resistance.

I’ll disclose here that I hold personal and professional positions in Rogers Communications.


  • I am pleased to say that I bought Telus on March 30th. I like the 4.2% yield and have been wathing the stock for that reason. My trigger was when the 5 day MA crossed the 20 day MA.

    BCE pays a better yield but was not yet ready for a buy using my strategy. The 5/20 MA appears ready to cross any day now.

    I would like to hold Telus, and even add to it, for the long term, using a 10 week MA cross of the 40 week MA as a strategy. If I had one so five years ago, or even 10 years ago, or even a buy and hold (gasp) strategy, I would have realized a pretty good gain.
    Am I being too optimistic?



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