Shaw Communications* (SJR.B : TSX : $18.02), Net Change: -0.78, % Change: -4.15%, Volume: 1,254,607
Worst program on BNN: Base Shelf Prospectus Filings – The Show. Shaw filed $2.5 billion base shelf prospectus for the issue of debt/preferreds/common shares yesterday, the prospectus replaces a $1 billion shelf for debt securities. Canaccord Adams Telecommunications Analyst David Lambert believes Shaw's operating momentum could slow during the remainder of 2009, with slowing Internet subscriber growth and the effects of increasingly aggressive TV promotions by TELUS (T). Shaw reiterated its 2009 guidance when it reported its Q1/09 results and increased its annual dividend by $0.04 per share to $0.84. Lambert believes this dividend policy reflects management’s confidence in its 2009 guidance, but in his view it leaves little room for further increases as Canaccord Adams now estimates Shaw's payout ratio could be approximately 66% of F09E FCF of $536.5 million.
BCE* (BCE : TSX : $24.20) Net Change: -0.63, % Change: -2.54%, Volume: 4,460,301
Location, Location, Location. Bell announced yesterday that it has agreed to acquire national consumer electronics retailer The Source to further enhance the growth of Bell's wireless, digital TV, Internet and home phone services.
The source operates more than 750 locations across Canada and the acquisition is expected to close in Q3/08, subject to court approval. The Source plans to carry the full array of Bell consumer services across Canada, including Bell Mobility, Solo Mobile and potentially Virgin Mobile wireless products and services, Bell TV's High Definition television services, high-speed Bell Internet, and Bell Home Phone products, by January 2010. The Source will continue to operate independently from Bell following its acquisition and will maintain its national brand, broad range of communications, computing and audio products, and its management team.
For 2008, revenue at the source was approximately $643 million while EBITDA was approximately $27 million. More than 70% of Canadians live within five kilometres of stores operated or licensed by The Source, and more than 80 million consumers shop at The Source each year. No price for the acquisition was announced.
