Wednesday, February 25, 2009

BCE Inc 2

I had a note on my calendar to take another look at this stock (TSX-BCE) after the December 2008 report was to be posted on February 11th. I had a chance to look at this today. What I do not like is that they have not produced proper annual statements. The analysts I have reviewed seem satisfied however. I still have questions on some figures and some are still in purple in my spreadsheet because I am unsure that I have the right figures.

The big question I have is what the EPS is for 2008. Some places show $2.25 and some show $1.01 or $1.02. I am not sure. The other things I do not have are cash flow figures as there is no proper cash flow statement. I have updated my spreadsheet on this stock as best as I can.

What analysts seem to expect for 2009 is that the stock price will go up to around $30.00. This is the same as the current Graham Price. Analysts seem about evenly divided into those that think this stock is a Hold and those that think this stock is a Strong Buy. There are also some Buy ratings on this stock. This is why the consensus rating on this stock is a Buy. (See my site for information on analyst ratings.)

What I look at is how a stock will do for me from now on. I must admit that I am a bit concerned, and this is why I have come back to review this stock. The consensus seems to be that it will do fine in the future. At the moment, I am going to continue to hold this stock, but I might decide to review this decision in the future. The telecommunication section has been a tough one for a while and I wonder if there is a reasonable change of making decent money in it.

This company has not been making any money for its shareholders for the last few years. It only spiked in price recently because of the buy-out. Since that has gone away, the price has dropped considerably. However, few companies are making money for their shareholders at this time. I am willing to give it some more time.

BCE Inc. is a communications company. Through Bell Canada, BCE provides local telephone, long distance, wireless communications, Internet access, data, video and other services to residential and business customers. Additional subsidiaries include Bell Globemedia, a media company that includes CTV and the Globe and Mail. Its web site is See my spreadsheet on this company at

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets on my web site.

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