Telus (T CN) Canada

Communications

Veritas Investment Research

Liam Gallagher continues to have significant concerns about the sustainability of the company’s dividend. Management announced a 3-8% annual dividend growth target from FY26 through FY28 and reiterated plans to eliminate the DRIP discount by FY27. While Telus expects to support this through billions in asset sales, reduced capital intensity and EBITDA growth, Liam remains unconvinced. Even if everything unfolds as planned, Telus' FY28 payout ratio will be 104% based on Veritas’ definition of FCF and 89% using the company's. He also does not believe the company’s premium valuation at 17x FY25 P/FCF vs. BCE at 13x and Rogers at 11x is justified, especially given its higher payout ratio (~145%) and net debt/EBITDA (3.9x) relative to peers.

- 16 May, 2025

Bear’s Den Idea Forum

MYST Advisors

Interesting shift in sentiment at MYST's latest buy-side event as the vast majority of participants felt the market did in fact bottom in June (vs. only a handful 5 weeks ago). The most compelling short ideas presented included:

Pfizer (PFE) - Adverse impact of Inflation Reduction Act not fully appreciated by the Street. TP $33 (30% downside).
Olaplex (OLPX) - Extraordinarily high margins to contract as competition intensifies and growth slows. TP $8 (35% downside).
Rogers Corp (ROG) - Expensive acquisition by DuPont in doubt as China regulatory approval delays persist. TP $170 (35% downside).
Sprout Social (SPT) - Low quality Software Co. trades at absurd valuation despite declining net adds / higher churn. TP $43 (35% downside).

- 16 September, 2022

Cogeco Communications (CCA CN) Canada

Communications

Veritas Investment Research

The case for a major comeback - already disappointed that Rogers didn’t take CCA out, the market is terrified management will embark on a long, expensive wireless network build-out. Veritas do not believe that this will be the case. Shaw and Quebecor have already proven how expensive it is even to try, and there are better ways to build out a wireless business without destroying $1bn+ in capital. CCA’s shares are discounted by 2-5 turns of EBITDA vs. peers. CCA only needs to be rational with its wireless expansion for shareholders to reap attractive returns - a very low hurdle. TP C$130 (60% upside).

- 04 February, 2022