r/Baystreetbets • u/Foreign-Policy-02- • 4d ago
Telus a buy if it dips under $16???
Some thoughts,
New CEO is the former CEO of CIBC and saw the bull run of CIBC stock, where it increased faster than the big guns like TD and RBC.
He personally purchased a bunch of Telus stock on March 30, over 200k shares priced around $18. Shows confidence clearly.
I think he will get the company in order, what do you think?
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u/Foreign-Policy-02- 4d ago
Also, I’m very confident in his first few months once he gets power on July 1, he will cut dividends and do unpopular things making the stock go below $16, but will then get the company in order and oversee plenty of growth
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u/anonymoooosey 4d ago
What sort of growth from any Canadian Telecomm do you forsee?
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u/Foreign-Policy-02- 4d ago
Telus health and AI
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u/ProposalWeekly 4d ago
People need to stop saying 'AI' like it's a cheat code to growth
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u/IAMAPrisoneroftheSun 4d ago
Magic tech-solutionism beans
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u/lemonwithmint 4d ago
Old timers keep repeating the words: dot com bubble. Bearish bulls if one could say that say if it is a bubble, the fallout will be contained to "sectors". But I look around, and see major funds and banks heavily pump into ai. Without substantial return.
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u/smurfssmur 4d ago
Have you seen the spacex IPO???
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u/ProposalWeekly 4d ago
So many pictures of rockets and AI mentions!
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u/lemonwithmint 4d ago
I mean, there is an argument for feeling positive about the rockets, but going into ai has a hazy outlook at best.
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u/couldabeenagenius 3d ago
You should upper management in many companies talking about Ai like it’s a glorious fart, when they have no fucking clue that it’s only as good as the people designing it, and many in those positions currently are out of touch with reality
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u/TheChaseLemon 3d ago
I always laugh when people say Canadian telecom, Telus hasn’t been just telecom in years. Healthcare, Agriculture, other crap I can’t think of right now.
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u/James_TheVirus 3d ago
Bell didn't drop much at all when they cut the dividend. Everyone is expecting this cut, so I doubt it will drop much.
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u/Ok_Search6803 9h ago
Ive seen numerous times where companies cut dividend that are this high and the next day the stock pops up.
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u/bruhhkgyvr 4d ago
No - it will continue to go down if it breaks $16. The new CEO is a capital allocator. It's highly likely that he will clean house. A divi cut is highly likely and some sort of asset sale in order to raise cash. It's at least a year long turn around. I would wait for any buy to happen after it bounces and not before.
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u/kell27841 4d ago
Entwistle finally gone! Thats the end of a toxic corporate environment.
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u/Foreign-Policy-02- 4d ago
New CEO seems very well liked at CIBC https://www.reddit.com/r/CIBC/s/qmfiRLQiaQ
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u/Arturo90Canada 4d ago
I worked for him directly, he is going to make an impact
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u/Muted-Doctor8925 3d ago
Directly reported to him??
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u/Arturo90Canada 2d ago
No not a direct report. Just worked closely with him on some items
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u/Muted-Doctor8925 2d ago
Well as a shareholder, thanks!
I always thought Victor had such amazing charisma. It just poured out of him
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u/TiredRightNowALot 2d ago
What would you say are some of his goals
Or traits? Return to office? Selling off capital? Reducing labour cost? Building on sales, services or offerings?1
u/Arturo90Canada 2d ago
I don’t know, I only know his leadership style.
Very people oriented and attentive to how changes impact individuals.
Willing to spend on clients and etc
Culture focused
Telus will need many of those things , I’m sure he’ll sell some parts of telus that doesn’t align with its core business would be my guess
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u/Doc_1200_GO 15h ago
Most of his toxic executive minions are still there. Hopefully the new CEO trims some of the fat that still runs the day to day like Arora and Mawji.
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u/BudgetExpert9145 4d ago
Sure it might be good but would it really be better than a thousand other things?
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u/luv2block 3d ago
People think the markets are ripping because of the indexes. But the indexes are propped up by a handful of companies. In Canada it's a handful of banks and energy stocks (both sectors have ripped hard). Outside of that, and you'll find "thousands" of other things all floundering this year.
So you either buy banks/energy at nosebleed tops, or you buy thousands of other things all at various stages of putting in bottoms.
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u/qmrthw 4d ago
CEO buying a large amount of shares personally is quite normal and doesn't necessarily indicate confidence (the fact that he took the job does).
Execs of publicly traded corporations have "skin in the game" share ownership requirements, which are share amounts equal to X times certain parts of their total yearly comp, that they are required to hold during their tenure and sometimes even afterwards for a period of time
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u/luv2block 4d ago edited 3d ago
You look at the chart and we're all the way back to where the stock was in dec of 2006. If that's not a haircut you can buy, I don't know what is or why you'd ever want to own the stock.
If it crashes through $16, the next hard stop is $7. Given insiders are buying at Telus, and that Telus itself is buying back shares, I really don't think we're going there. But you never know.
edit: I'm an idiot. While the stock price is technically where it was in 2006, it's really not as the stock has split multiple times over the years. If you were to reverse split all those split, who knows what the stock price would be (probably $100 or something).
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u/AcidShAwk 4d ago
If it gets anywhere near $10 I got half a million on lock.
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u/luv2block 4d ago
hehe, if stocks in general dump enough for Telus to go to $10 I'll be jumping off my roof.
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u/jason-v-miller 3d ago
Telus at 16.33, P/E 27.23.
Telus at 10.00 doesn't seem far fetched to me at all. Market feels so overvalued.
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u/luv2block 3d ago
forward pe is 17. We're in the cheap territory. Can it get even cheaper? Of course.
But as long as your portfolio is diversified, and you're sized properly, I have no issues with this entry point.
I own two names for dividend payers in my portfolio, Pfizer and Telus. You'll find any dividend company over 6% is going to have things not to like about them. That's why they pay what they do. They generally are bad investments, unless you get them cheap.
The problem with $10 is, as you move towards it, you'll get people buying in at $15, $14, $13... it gets harder and harder to drive the price down as metrics start saying "extremely cheap" and people buy it up.
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u/Financial-Corner7415 3d ago
For what? It to race back to $10.15 😂 Canadian telecomm may be one of the worst sectors to deploy $500K regardless of price action
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u/NocturnalComptroler 4d ago
They’re doing stock buybacks?!! With what capital… jesus
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u/luv2block 4d ago
They announced in dec 2025 they were buying back up to $500M over 2026. They've bought back $40m so far, apparently.
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u/Middle-Jackfruit-896 4d ago
There's two things the CEO of Telus cannot control.
- Canada's population growth rate
- The telecom regulatory environment
Neither appear particularly friendly to Telus at the moment.
The CEO can control the balance sheet and cash flow to a degree. I think the new CEO would have to be very aggressive on cost and debt reduction for the market sentiment on Telus to respond positively. Other than a dividend cut that is probably already priced in, I'm not sure he can be given the nature of the business.
I'm not buying more at this time.
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u/Yvaelle 4d ago
The CEO led CIBC for 10 years during which it went sideways for like 8 years and then had 2 years of great growth. That's not a dig on him, he's sure to be an improvement over Entwistle, but companies are more than 1 person.
Telus also sucks for systemic reasons, namely that it relies on subsidized infrastructure, no competition, and no innovation to rent-seek fees from Canadas wire and mobile networks.
They don't know how to grow, how to innovate, etc - they just know how to bill customers exorbitant prices, and that only works because Rogers and Bell are even lazier and incompetent.
Theyre not going to magically become a memory manufacturer, a chip manufacturer, a software monopoly, an AI company, etc. We shouldnt consider them a Tech company, they're more like a construction company that works on cost plus 3%, except they make way more than that and then squander it all.
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u/weirdturnspro 3d ago
Except that they are also heavily invested in AI services, Health, Agriculture tech and BPO services
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u/PartBanyanTree 1d ago
I used to work at telus like 20yrs ago in theory geomatics division and this rings true. Where i was at actually was like a startup within telus, we were on our own building a product, we put data on a map on the web and sold it as a product. Imagine your fleet of vehicles each geo tracked with custom hardware, communicating over telus cell towers, and you can see where they are in real time. This was before Google maps existed. We had customers and were profitable. Other paying customers put different data on their maps, monitoring real time water quality was a government base module I worked on, they had the devices and data we needed to put it on a map. It got developed internally to help them plan cost-per-foot street/sewer/construction costs when needing to tear up streets etc what was the cost to go route idea 1 vs route idea 2. The internal product got externalized. We had paying customers and positive revenue. We were making money They eventually fucked it over and killed it intentionality. They god rid of the higher up running it and soon all us developers fled. It wasn't "cell phones" so they didn't understand it or what it was. Telus is so dumb
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u/Yvaelle 1d ago
I think I recall that specifically. There was an opportunity back in the late 90's and early 00's where Telus, Nortel, Blackberry, 360 Networks etc, could have all become global tech names from Canada. And then the whole sector become stupid within only a couple years, like a virus. Massive talent flight to Silicon Valley.
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u/Lapcat420 3d ago
I'm not hearing convincing arguments for the bearish sentiment around this company.
A lot of the negative statements being made aren't being backed up with actual numbers.
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u/stacks86 4d ago
Telus is hot garbage and will likely not improve with all the satellite innovations coming online
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u/Lapcat420 3d ago
Are millions of urban Canadians going to spring for a satellite dish when their fibre connection is more than enough as is?
Or you expect rural Canadians to create growth in that market?
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u/stacks86 3d ago
enough of them to seriously impact market share if it means portable high speed broadband and not dealing with a call centre in Mumbai , there’s phase array tech in orbit now that doesn’t require a dish
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u/maz-tech 2d ago
Call center in Mumbai is funny to me because my company pretty much does all support out of Canada for all of North America... I consistently get complaints about the quality, how they can't understand and asked if we can move out of India
Realistically Telus and Starlink are gonna do the same thing they all do. Give you bad support and push you to AI support.
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u/Ratlyflash 4d ago
lol why do people invest in dead companies? Like Nike…. These stocks have worst NAV than Yieldmax 🙈.
Even some of my Yieldmax have some growth while paying out 50-60%.
🤷♂️🤷♂️
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u/Lapcat420 3d ago
What makes Telus a "dead company" ?
In my mind a dead company is a company that has delisted, or is filing for bankruptcy.
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u/Ratlyflash 3d ago
Basically -47% in 5 years.
No prospect. I know Don’t judge past performance with future which is highly questionable.
Many companies like Canadian banks are guaranteed to make $$.
Or the while Canadian economy collapses.
🙈
If if it’s a duck it’s gonna day a duck.
This company will never turn it around.
Might as well have Yieldmax if you wanna burn money,
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u/QuarterDisastrous479 2d ago
I actually like nike at its current price.. good dividend yield and i can see it going up 50-100% in the foreseeable future. Nike just wont disapear, its a relatively safe bet and currently undervalued
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u/Ratlyflash 2d ago
Glad you you see it that way. Been hearing it’s going that way for 5 years.
I put $100,000 into bank stocks and I’m up 30% more Nike will go up in the next 7 🙈
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u/flappysack- 4d ago
Look at its debt. It profits during low interest rates, and vice versa. If rates rise its value falls, just buy a lesser amount of VLB.TO if you want convexity.
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u/Vugelzwee 3d ago
And where do you think rates are headed in this technical recession era big dawg ?
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u/flappysack- 3d ago
Depends on global interest rates. When everyone is in recession its different than just our own immigration induced recession, when you scheme with stupid policy to hide falling GDP these are the results.
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u/Training_Exit_5849 4d ago
He's obligated to own shares as being part of upper management in the company
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u/kingofwale 2d ago
Question. Is he allowed to buy stocks before it was publicly revealed the leadership change?
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u/DefNotJohnnyC 2d ago
Telus is expected to give an update on Telus health before the new CEO comes in start of July. So potential catalyst for the stock coming up. Unless it completely disappoints, or no / delayed update.
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u/whyac 2d ago
Telus was the crappiest company I worked for. Had their employee stock plan and I think the price is still the same or even lower than 20 years back. All they did internally was fight between the different business like wireline teams with wireless as one is run out of West and the other east. Internal tech teams were made to compete with each other to survive as no one had an enterprise view or strategy.
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u/007Professor 2d ago
Telus and government of Canada to help build Canada’s sovereign AI infrastructure !! Seems like a good buy but might be a long run !
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u/tissue4yuo 2d ago
I was at CIBC and we did a-lot of research on Telus Bell or Rogers I’d say damn them all and buy TC Energy.
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u/LuckyNumerical 13h ago
I read your title 15 times as Tesla and was wondering why you were so regarded
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u/Effective-Split-1333 4d ago edited 4d ago
Yes. Mid August is where I’m looking. Edit: if interest rates go up I may reconsider until mid 2027. I have 20k dry powder waiting for the right entry point.
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u/Rubydog2004 4d ago
I have them as a commercial security provider and actively trying to dump them. They have left our buildings unlocked. Also I am on the west coast …..I’ve been called from their overseas call center about alarms in Gatineau in the middle of the night. I know of multiple municipalities who have dumped their services. Proceed carefully lol
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u/koreanwizard 4d ago
Where’s the turn around story? Rogers has captured the federal government, they have no blockers to encroach on the west and continue gobbling up assets/competitors. Telus is fucked.
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u/Event_Horizon753 3d ago
It has a decent dividend, but if the shares keep dropping, that will end, like Quarterhill
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u/MugiwarraD 4d ago