Admittedly I don't do deep DD on my investments. I invest in what I know and/or like and/or trust, and that I think is currently trading at a good valuation. In fact two of my better recent investments were $NVEI and $CJT. I'm up 25% on $NVEI in only a few months, and the basis of my DD for investing was I heard Ryan Reynolds invested in it. And I'm up 22% on $CJT in a few weeks only, and that was based on the student investment club at my alma mater recommending it in a case competition that they won.
So with that disclaimer in mind, my latest investment in $BCE. What's my rationale? It is a blue chip, very stable Canadian company. $40b market cap in an industry dominated by a few players only. It is currently trading at a 5 year low, so this is about as cheap as you can get it. And because of that you also pick up an almost 10% dividend yield on it!!! If I can get something blue chip paying a 10% yield at a discounted price, I'm happy to sit on this at these lows, collect a good dividend, and wait for the market to strength and valuations start to rise back up at least to historical levels if not more. And even if they don't rise, I'm still getting my 10% dividend and I'm happy with that.
Why aren't people getting in to BCE at these low prices and with this dividend yield?
https://i.redd.it/n4oswdy1a1bd1.jpeg
Posted by King_NBK
9 Comments
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Why? Because their stock is down. We only buy ATH and sell ATL
[https://finance.yahoo.com/news/investors-bce-tse-bce-unfortunately-172529504.html](https://finance.yahoo.com/news/investors-bce-tse-bce-unfortunately-172529504.html)
The long and short of it is because Canada is heading to a recession.
Questionable mass immigration policies and dubious economic outlook spell further headwinds to come.
I would not touch this stock with a 10 foot pole. The higher management doing all the wrong moves, this company going straight to the gutter for a couple of years still.
Roger’s a better buy than this trash stock.
Never thought Iād see BCE here. RIP my BCE
Here’s some DD on BCE. [https://www.alphaspread.com/security/tsx/bce/summary](https://www.alphaspread.com/security/tsx/bce/summary)
Potential upside, minimal downside pending the company remains solvent and the market doesn’t go full
šš».
But what is the opportunity cost of this trade? As in, what if you went TQQQ instead? Would you make more or less in 1yr from today?
Or.. go full regard as one should and pick up some FDs on TSLA.
Canada about to get smoked for 5yrs and prices of telecom cartel services are down a lot