Should investors hang up on BCE shares before election day?

Ad blocking detected

Thank you for visiting We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Club
$299/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

Justin Trudeau has made the relatively high cost of Canadian of cell phone data an election issue by promising to slash subscriber costs by up to 25%. Do insiders at BCE sense riskier times ahead for the domestic cell phone industry as we approach election day on October 21st? INK Research tackles that question in the September 25th Morning Report and Ultra Money video. Below is a free version of the video that was distributed earlier on INK Ultra Money.

INK trading day morning reports and videos are available through or Canadian Insider Club Ultra memberships. INK is subscriber supported and does not accept payment for stock coverage.

Script (check against delivery):

        BCE stock has been setting new highs

        but so has insider selling.
        Over the past 90 days,
        insiders have sold $72 million worth
        of stock in the public market,
        a four-year high.
        The recent selling came before
        the news last weekend that if reelected,
        Justin Trudeau would target
        a 25% reduction in
        cell phone bills for
        Canadians over four years.
        a minority government situation develop,
        there is a risk that
        politicians of all stripes
        may jump on the band wagaon
        to cut cell phone bills.
        BCE has enjoyed annual EPS growth
        over the past 5 years of 4%,
        but that is below the Telecom
        sector average of 4.8%.
        Moreover, the growth took place even as
        BCE enjoys strong market power
        in the wireless industry.
        Together with Rogers and Telus,
        it is in a threesome that accounts for 90% of
        wireless Canadian subscribers according
        to the latest industry data.
        While the chances may be small that
        politicans move to shake
        up the wireless industry,
        the risk may require an increase in
        the BCE risk premium and
        its associated dividend yield
        which is curently 4.9%.
        Such a scenario has the potential lead
        to a period of
        prolonged share price underperformance.
        The best outcome for BCE shareholders
        at this point would likely be
        a majority government of any that feels
        little urgency tinker with
        the structure of the wireless industry.
        Our report which is not
        a recommendation to buy or sell
        securities is available through   
        or the Canadian Insider Club     
        Good luck, friends, and thanks for listening!

Comment On!

Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to (via Easy Blurb).