Investing

Investing Idea - Dividend Growth

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May 18, 2015
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jerryhung wrote: CJR.B reports tomorrow

so weak hands are dumping? new 52LOW $11.1 today
-2% yday and -2% today
EPS was below expectations (0.38 vs 0.43). FCF was still good at 83 mil
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nikels21 wrote: EPS was below expectations (0.38 vs 0.43). FCF was still good at 83 mil
Yeah, that sucks. Chasing high yield sucks
https://ca.investing.com/news/stock-mar ... 038-950058
Jan 10 (Reuters) - Corus Entertainment Inc CJRb.TO :
* - QTRLY REVENUES C$457.4 MILLION VERSUS C$467.98 MILLION
* CORUS ENTERTAINMENT ANNOUNCES FISCAL 2018 FIRST QUARTER RESULTS
* Q1 EARNINGS PER SHARE C$0.38
* Q1 EARNINGS PER SHARE VIEW C$0.44 -- THOMSON REUTERS I/B/E/S
* Q1 REVENUE C$457.4 MILLION VERSUS I/B/E/S VIEW C$473.5 MILLION
* Q1 ADJUSTED EARNINGS PER SHARE C$0.38
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Dec 14, 2010
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jerryhung wrote: CJR.B reports tomorrow

so weak hands are dumping? new 52LOW $11.1 today
-2% yday and -2% today
Weak results, but somewhat aligned to what to expect until transformation results take place.

Will wait for the earnings call presentation.


Rod
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rodbarc wrote: Weak results, but somewhat aligned to what to expect until transformation results take place.

Will wait for the earnings call presentation.


Rod
What transformation exactly are you expecting to happen? Isn't the shaw acquisition integrated already?
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Apr 12, 2012
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Wow Corus 8.5% drop $10 a share now....
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zobi123 wrote: Wow Corus 8.5% drop $10 a share now....
I will be adding. Conference call revealed they will continue to be increasing their owned content. I also thing they have some online potential with global and treehouse brands
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Dec 6, 2006
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zobi123 wrote: Wow Corus 8.5% drop $10 a share now....
Sucks. I added more not long ago late Dec too... crap. Can add more now but then it'll be getting big in my portfolio....
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boyohboy wrote: Sucks. I added more not long ago late Dec too... crap. Can add more now but then it'll be getting big in my portfolio....
At this point it just feels like a falling knife, who knows when it will bottom out.
Sr. Member
Jan 30, 2017
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rodbarc wrote: I believe RNW is undervalued, as stock price doesn't reflect the projection for earnings and cash flow:

Image

Image

Q3 results were out recently, and they were fairly decent. The poor stock price performance is the result of management declaring that they intend to use the proceeds from Solomon sale to pay debt - a measure that certain users here would think it's prudent rather than borrowing further to grow further - but repaying debt actually causes the opposite effect, as the market thinks that there's little to no growth in sight, hence the management decision to pay debt until a growth opportunity appears. The cash will be used to pay down credit facilities used to fund the South Hedland capex and repay $215MM of convertible debentures held by TransAlta. RNW is on track to meet their corporate guidance this year, but the focus on debt repayment rather than deploying cash to further growth has been seen as negative. Eventually RNW will deploy cash for further growth and, in a similar fashion to Enbridge model, RNW will have TA assets transitioned to them, once they're fully contracted and operational.

Therefore, I see the current dip as an opportunity to add further. RNW has always positioned themselves as a conservative provider of stable cash flow, and it's actions like this that will allow that stable cash flow to continue growing. There's nothing indicating that there are issues from a fundamentals perspective - if anything, they are positioning themselves to be stronger financially, at a cost of aggressive growth, which is expected under their business model.


Rod
How do you read the above graphs? Is the white line at the bottom showing if the dividend has grown in the year?

Is there like a ranking or a quick comparison that shows different companies and how much percentage their dividend grew in the past 5 years for each year?
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Jun 28, 2016
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zobi123 wrote: At this point it just feels like a falling knife, who knows when it will bottom out.
On the other hand, this is a company which is predicted to finish both this year and next year with more than $1/share in earnings. It's trading at less than $10/share. It definitely has some challenges in order to return to slow growth, or at least stabilize earnings/share, but, when I look at how expensive the rest of the current market is by comparison, a company with those sort of earnings at this sort of price looks pretty good.
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CJR.B is negative but seems oversold
-15% drop after -5% in last 2 days
Ouch, 2018 range is $11.8x -> $9.3


ENB/TRP getting dumped today also
TRP is near 52w low $59.xx, wow
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May 17, 2012
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Wavelet wrote: On the other hand, this is a company which is predicted to finish both this year and next year with more than $1/share in earnings. It's trading at less than $10/share. It definitely has some challenges in order to return to slow growth, or at least stabilize earnings/share, but, when I look at how expensive the rest of the current market is by comparison, a company with those sort of earnings at this sort of price looks pretty good.
Do you see opportunities for growth in this sector if a company has not embraced or began to embrace online streaming / alternative methods of delivering content. I sold today as I'm not seeing much of an effort from corus outside of traditional (TV/Radio) content delivery.
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Sep 18, 2016
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Average Cjr.b down at 10 and then it drops to 9 something. You can not win.

All my telecom, energy and renewable div just go down on no news, good news and bad news. Its good for drips but being in the red the whole time is no fun.
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Jr. Member
Nov 19, 2017
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esoxhntr wrote: Do you see opportunities for growth in this sector if a company has not embraced or began to embrace online streaming / alternative methods of delivering content. I sold today as I'm not seeing much of an effort from corus outside of traditional (TV/Radio) content delivery.
If I was management, and I just did the Shaw restructuring, and then promised to be sustaining this dividend, investing in modes of optimizing costs and structure, and deleveraging their debt, and then all of a sudden say on top of these, invest a lot into switching towards growth of streaming, then analysts would definitely say management are over their heads.

If it was an ideal world, that could be done. Instead, I think their goals are realistic. This means we are not expecting any huge upward price movements in the near or even distant future. So, the company is what it is - a mediocre, but sustainable business for the next business cycle (~5 years from the restructuring period?). Does this mean they'll never switch over to streaming? Of course not. To me, they've just bought a strip mall and are renovating, and when they've got a cash generating restaurant that still needs renovating (cost optimization), they're just finishing that, and reducing debt, before they can start actually getting capital to expand their strip mall to other areas.

Disclosure: Bought cjr.b in early 2016 at ~9.5. Sold in October 2017. Just bought in at 9.68 average price...am considering averaging down if it hits 9
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Jun 28, 2016
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esoxhntr wrote: Do you see opportunities for growth in this sector if a company has not embraced or began to embrace online streaming / alternative methods of delivering content. I sold today as I'm not seeing much of an effort from corus outside of traditional (TV/Radio) content delivery.
Corus is already doing that, but it's still a small part of their business right now.

http://www.corusent.com/about/our-brands/digital/

It's also involved in content creation, which is another potential growth area.

http://www.corusent.com/about/our-brands/content/

Ultimately, however, Corus doesn't need growth to be a good investment at these prices. It just needs to stabilize its core business, while deleveraging. That won't be trivial, as TV viewership is in a slow decline, but they seem to be well on their way. Many companies have adapted to paying out dividends from a commanding position in a slowly shrinking market, while looking for growth opportunities.

Personally, I'd prefer it if they cut the dividend in half (it would still be >6%, and used all the extra cash that freed up to pay down their debt more quickly, but what I would consider sub-optimal allocation of capital is not enough to be a deal-breaker for me with prices where they are. I'll be adding more below $9, if we get there.
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Nov 19, 2017
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Wavelet wrote: Personally, I'd prefer it if they cut the dividend in half (it would still be >6%, and used all the extra cash that freed up to pay down their debt more quickly, but what I would consider sub-optimal allocation of capital is not enough to be a deal-breaker for me with prices where they are. I'll be adding more below $9, if we get there.
I agree with this, but also agree as to why they're not doing that. I think they're trying to appease the people who had their share prices hit by the restructuring. I think what they're doing is a fair compromise. "We're getting rid of the debt, but we'll also do it slowly to benefit everyone on board here"
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Feb 15, 2006
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1Ogiku2 wrote: All my telecom, energy and renewable div just go down on no news, good news and bad news. Its good for drips but being in the red the whole time is no fun.
They dropped because of the news Trump might terminate NAFTA.
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Nov 19, 2017
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nikels21 wrote: What transformation exactly are you expecting to happen? Isn't the shaw acquisition integrated already?
I think he's referring to the cost and advertising restructuring the management referred to. The hope is that these will reduce costs, increase income, and improve cash flow, which will contribute to debt reduction, and sustaining of the dividend. Of course, improved cash flow and reduced debt will also make future ventures to increase growth in other areas like digital platforms more possible.

Warren Buffett says a great company at an okay price is better than an ok company at a great price. Both will make you money, but the former moreso than the latter (and neither of these should lose you money). Unfortunately, at this state, Corus is an ok company at a great price (HCG in my opinion was always a great company at a great price when it dropped last year). However, I'd rather go with an ok company at a great price when all the market is currently offering are low/high quality companies at crazy high prices.

Disclaimer: I am overweight HCG

edit: accidentally wrote same sentence twice
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Jul 17, 2008
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Bought CGX 2 months ago when it went bellow 37. Thinking of adding some more
Also thinking of adding a bit more cjr.b

Opinions? Thoughts? I'm a bit concerned when considering the digital content is getting bigger and bigger and people stop going to movies/watching cable.

On a side note: Would NAFTA being terminated increase the US index? And Canada TSX decrease? Want to get some more XAW in my TFSA with 2018 limit increase, but not sure how the US market will be affected if NAFTA is terminated (I'm thinking it would increase?)

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