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Thursday, December 8, 2011

Why you shouldn’t be investing in BCE Inc. (BCE)

At this time, I am in a phase were I don’t know what to do with my money. I use to invest every months or so whenever I had money available. What happen these past couple days is that I have money available, but I no longer know in what to invest. Because of a margin account situation, I always invest in my non-registered account. Forget about TFSA. The ultimate goal had become to keep me out of a margin call. Also, because ambitious has no end, I also want to see the value of my margin account increased and of course, I also want to see the value of my portfolio increased.

Overall, the fun is to invest-invest-invest! Part of this certainly comes from the fact that I have a small net worth (close to 70k at this time). For someone of my age (31), a 70k is really not that much. However, that 70k satisfy me. At first, I only wanted to invest to have a bit of cash on the side. But years past – maybe too quickly – but I realize how easy it was to build a portfolio. So I just never stop. At least until recently. It has become more difficult than ever to find something to invest in. A reader has suggested Visa (V). Nice idea, but Visa trades in US dollars. I am exclusively looking for real Canuck stuff at this time. Don’t forget my margin situation in my broker account please.

Ok, so all this to say that despite not knowing in what to invest new anymore, well, today, I learned that BCE Inc. (BCE) had increased its dividend of 5%. However, BCE Inc. (BCE) is of noooooo interest for me. Why? I am going to explain, as always. You know that this is the blog to read when it comes to personal finance right?

First of all, BCE Inc. (BCE) headquarters are located in Montreal, Quebec province. What you need to know is that Quebeckers are extremely selfish individuals. There’s a lot of corruption going on in Quebec, we recently saw that in the construction sector and even more recently, in Quebec public kindergartens. In Quebec, citizens accept living in corruption. You’ll learn about their corrupt system in the news. That’s because they are proud of it. They are proud of their shit like I am proud of my 70k net worth. Quebeckers like to expose their corruption, but they are not willing to see it change.

Quebeckers are not good Canadian citizens. They are cheaters and liars and have to respect to Canadian roots. Bloc Québécois, Parti Québécois, Pauline Marois, Gilles Duceppe, just to name a few organizations and a few names, just a few examples of Quebec misery, cheaters to the Canadian country, not loyals, cheaters, liars, corruptive. In their willingness to succeed, Quebeckers messed out badly. In Quebec province, the Québec sovereignty movement is getting stronger.

As an investor, it’s extremely important to know exactly what’s going with Quebec province.

Are you going to invest in companies located in Quebec knowing exactly how badly that province is manage. The massive part of Quebec is not proud of being part from Canada. Our dollars are Canadian dollars. It’s more than important to keep investing exclusively in companies located outside Quebec province.

What’s going to happen once Quebec will become a country? If you invest in a company that has its headquarters in Quebec province, you increase your chances of losing all of your capital. You are investing in a province that doesn’t believe in the power of Canada. You are investing in a disrespectful province. In a province of cheaters. From my experience, all the companies based in Quebec province that I had invested in haven’t performed too well. Need an example? Yellow Media Inc. (YLO). Timminco (TIM). Those were 2 disastrous Quebec stock pick.

Don’t take your Canadian bucks to increase the capital value of Quebec province. That will be very wrong.

One day or the other, BCE Inc. (BCE) will decrease in value. And when it will happen, I will be protected because I do not hold any BCE stocks in my portfolio.

Invest safely and wisely. Canadian bucks need to remain FOR and IN Canada for Canadian companies.

Forget about BCE. It’s recent dividend increased is just a tactic to distract investors from the fact that the company is located in Quebec.

24 comments:

Ruth said...

HI Sunny,,enjoy all your blogs and you are a busy girl...nice if you took your mom and went to a warm sunny spot for a vacation...as for BCE..u cannot go wrong and Quebec will never be a country on it's own..it cannot afford it. i bought BCE and am up quickly and now they have joined Rogers in acquiring the maple group...lots of gains. i think having 70K is great too.

SPBrunner said...

I must admit that I am not crazy about BCE as an investment. I worry about its future. Although this was the first company I invested in. I have very little of it left.

However, I do think that there is some good companies with Head Offices in Montreal. Did you know that many said that if Quebec separates they will move their Head Office?

Sunny said...

Hi Ruth,

I am busy, but not that much busy :)
My net worth is hitting the 70k, its quite cool. I cannot help it Ruth, sorry, but I am not a BCE fan.
Quebec need to seriously be kick out of Canada. Nothing good is coming from that province Ruth. I live in Quebec province for about 5 years. I know what I am talking about. Quebec is HELL.

I am not saying all this to make Quebec readers feel bad, I am saying and writing all this so readers can be aware of the risks they take when they invest in Quebec based companies.

One day Ruth, Quebec province will separate and when it happen, I am going to celebrate.

Hi Susan,

I never have an interest in BCE. BCE increased its dividend in order to be more attractive to investors. Simple is that.

I am not having a love affair with Quebec province. In my portfolio, all Quebec based companies haven't performed well: Timminco (TIM), Yellow Pages (YLO), Colabor Group Inc. (GCL), Blue Note Mining (BNT). GCL is getting better, but barely.

So far, I never invested in a successful Quebec based company because guess what, there's any them :) Or if you know any, feel free to share. But your Saputo or something like it has problem too.

No, I didn't know that some companies consider relocated if Quebec become a country. They should relocated right away, they are paying way too much taxes and Quebec province cannot properly manage its finance.

BCE simply suck.

There's way better companies to invest in out there. I have them all in my portfolio.

:)

Sunny said...

Ultimate punishment for Quebec lack of loyalty to Canada, I think this is it.

Anonymous said...

Well look at that, a montreal company buying the Toronto Maple Leaf and The Toronto Raptors. Not counting that they're also a minority holder of the Montreal Canadians.

I've held Bce since 2008 and I wish all my money would've been invested in companies like BCE; than I wouldn't have any loss this year. As for the dividend increase, BCE has been increasing their dividend and buying back their shares as it's a cash cow machine. They collect a ton of money from all these young customers (and older ones also) using their cell phones, internet and digital services. I can't find much safer place to invest in. I'm sure it would meet the rules of investment of Derek Foster.

You keep mentioning about problems in Quebec, corruption, etc. But what you fail to mention is there's corruption all over the world and other part of Canada also. We just have to look at what happened in the US with the mortgage collapse.

Even in our small province of New-Brunswick, we hear about corruption, just not as loud as in Quebec as we are much smaller. For you to single out Quebec is very small minded, especially from a french canadian. You don't have to agree about everything that goes on in Quebec, just like I don't agree with everything that goes on in New-Brunswick or Canada, but there's no need to be anti-Quebec.

Do you remember the Cor party that tried to run the province and wanted to eliminate the french language in our province. Or what about the fact that our canadian conservative government is born from the reform party that also wanted to separate the western province from Canada and keep all their riches to themselves and not pay payments to poorer provinces like ours.

Sunny said...

No need to be anti-Quebec? It's because of people like yourself that individuals like Brian Mulroney are still in front of the camera after committing financial crimes. People like yourself are weak.

I don't recall the Cor, but its normal for richer provinces to develop a sense of autonomy, especially when Quebec province being still in Canada and suck all the positive energy of Canadians.

You need to be more sensitive to the fact that Quebec province is a land of massive corruption, full of a lack of common.

Cheaters like Brian Mulroney and its not for nothing.

Crystal said...

Perhaps SJR.B? They pay a monthly divident that will likely increase and offer a DRIP.

Sunny said...

Thanks for sharing Crystal!

Anonymous said...

Sunny-Perhaps it would help us,(all the readers of your blog) if you could articulate why you only invest in Canadian Companies which pay dividends?(besides from the favorable tax treatment you receive)

Cheers,

Mark

Anonymous said...

If Quebec did separate, it is often said that the Maritimes province or even the 4 Atlantic provinces would join the United States and not be a part of Canada.

Just because companies are headquarted in Quebec doesn't mean they are registered there. If a company rents there office space from a REIT it would be cheaper in Montreal than Toronto, Vancouver, or Calgary. I believe one of my stocks, the company is HQ in Halifax and registered in Alberta.

Anonymous said...

You want examples of corruption in Canada, just look it up. Here's an example:

"On Prince Edward Island, the newly minted Liberal Premier carried out a money-laundering scheme in 2008. It was so vast and so widespread there is virtually no law firm, accounting firm or media outlet without taint. The $540 million Provincial Nominee Program or PNP shoveled money from Chinese immigrants to elected members of the PEI Legislature, some of whom have admitted it, to Deputy Ministers, senior and not so senior civil servants, Liberal Party faithful and local businesses.

Here's one from a new-brunswick MLA:
"Ex-Liberal MLA will stand trial on fraud charges - New Brunswick ..."

One from Nova Scotia
"MLA spending probe in N.S. gets 4 charged"

I could go on all day, it goes on all over the world, not only in Quebec.
The one that's weak here is you as you don't take the time to inform yourself. You just rant on about Quebec, thinking it's the only place you have corruption.

Ruth said...

HI Sunny like anonymous said about BCE investments and would have no losses..i watched the business channel and there was not one advisor that didn't recommend BCE..i am buying more as it will always be stable and grow...why does it matter if it is in Quebec? investing is about making money!

Ruth said...

also was mentioned enbridge and bell aliant ,,all have stayed stable , good dividends........well not enbridge but made money...not like a couple of losers i have already and waiting to unload them.

Ruth said...

question for yu Sunny,,,why does every prime minister almost always comes from Quebec?

Sunny said...

Hi Mark,

Well, I find it pretty obvious but anyway, if you like to hear from me again. When you invest in Canadian companies, your doing much more than just creating help for your own selfish self lol, you are also creating health for Canadian citizens - indirectly and you also contribute to the health of Canadian businesses.

From my part, I hold a bit of things in US dollars but only silver. I would suggested to any investor to take advantage of the power of the Canadian dollars and the parity we are in right now because it won't last forever. However, most part of my portfolio is Canadian.

It's really important to invest in Canadian companies mostly because our money need to remain and be invested in our country only. But seem like Derek Foster doesn't think that way at all because from what I see, he's exclusively holding US companies inside his portfolio.

When you invest, you become greater than yourself your becoming part of the really powerful Canadian capitalist system.

Most Quebeckers are not proud Canadians and there need to be a price to pay for not being loyal and for being that dumb and stupid.

Hi Ruth,

Have you read Susan Brunner comment about BCE? She doesn't like BCE either. You can invest in BCE if you like but the way you write, it seem like you already invested in BCE and plan to invest in it again.

Don't invest too much of your bucks in the same company Ruth - NEVER.

BCE is a telecom company. There's new players in the game, like Wind, Videotron, Chatr. Remember your investment in RIM how it went bad. BCE is also, in a way, a tech stock. You should stay away from tech stocks Ruth, that's my best advice for you.

It's better not to invest at all than to invest in companies like BCE. Their recent dividend increased is creating the illusion that its a good company to invest in, but it's not.

Prime Ministers are often from Quebec because they are corruptible and they know that its easy to corrupt while being at the position of Prime Minister. Take Paul Martin, Brian Mulroney for examples.

Jean Chrétien is certainly the only Quebecker with a bit a common sense. I don't believe he's a corruptible man despite what happen when he was PM.

I don't like Quebeckers, its my right. I don't want to have to deal with individuals who don't believe in the power of Canada.

The only reason why I went through the stock crash of 2008 without trouble is mostly due to the fact that I had invested among the best Canadian companies. We need to appreciate the fact that we're living in one of the most healthy country of the planet. My portfolio is the reflect of that situation, actually.

May God bless Canada.

Ruth said...

Sunny, have you ever thought of joining the Canadian Army, you would be an excellent subject. Enjoyed your answer and love your blogs. for your age, i am amazed at the spirit you have for many things other than stocks. Also if SP Brunner would have kept her BCE stocks today, she would be a rich woman...i only have a 100 shares so far but i want more!

Anonymous said...

You lived in Quebec for 5 years. You couldn't of hated it that bad, or you would of moved heaven and earth to get out of there right away.

The BLOC won 2 or 4 seats in last election. A big decline, which really tells me that Quebecers do not want to separate. There are problems with our political system.

Alberta mentioned separation before also.

Sunny said...

Thanks Ruth. Need to think for the long term. BCE had a successful past, but would it has a successful future? For my part, the answer is no.


As for the Anonymous, you need to understand that Quebeckers have an hypocrite nature. It's not because that the Bloc Quebecois didn't win many seats that it mean that the sovereignty movement is dead.

Knowing how badly this country is being manage under Stephen Harper, if I would be living in the richest province of Canada, I would also be requesting to become a country.

Alberta should definitively become a country of its own and live independently of Quebec province. I am absolutely for that idea.

You do not always choose where you live you know. I moved in to Quebec province to get a job at CLS Lexitech at their Brossard office. I had that big cow as a director who has her daughter working as a person in charge of the human resources in the exact same office. And it was being considered normal by CLS Lexitech. The Brossard director could have giving work to her son and husband that it wouldn't have matter either.

Quebeckers don't have that sense of leadership and common sense that Canadians have.

I am talking from experience.

The North of New Brunswick is also pretty much hurt from the proximity of Quebec province. All the North of New Brunswick is in bad shape and there's a lot of corruption here going on.

The North of New Brunswick is a mini-Quebec. It's simply doesn't worth shit. Not even.

In live to move forward, you need to know how are your friends, how are your enemies. You need to know which places are the best for you to find work. You need to know in what to invest etc etc etc. and my blog answer to many questions on which is crucial to have an answer if you want to be successful.

Quebec is an enemy territory that is slowing down the development of Canada. Quebec always want to get a special treatment, and they don't worth in term of richness other provinces like Alberta or B.-C.

I hope I am making myself clear here, because I won't be repeating myself.

Anonymous said...

Actually, Alberta wanted to separate when Jean Chretien was in office. They seem to be happy in Canada now that they got Stephen Harper as a prime minister.

As for BCE, we are talking about a Quebec company, like you said had terrific past. Although BCE might not have the growth going forward as it had in the past; for a mature company, that's normal. The same could be said for our banks and most of our blue chip company.
Now as far as the dividend increase being an illusion, nothing could be further from the truth. The dividend has been increased countless time in the last few years and stocks has been repurchased. The revenue continue to increase just like it's share price. You have Just Energy with a high dividend and that has done nothing for it's share price; maybe that's where the illusion stands.
There's more competition, but for BCE also more opportunity. Let's not forget that a few years ago there was no tablets.
To compare BCE to a tech company is ludicrous. A tech company like Rim can sell a hot product one day and be obsolete the next. As for BCE, they will always have people paying their phone, digital tv, internet and now tablets plan.

As far as competition, every business has competition, look at Target coming to Canada to compete against Walmart, Loblaw, Canadian Tire, etc. Leaders like BCE can still thrive despite competition.

You're angry at Quebecers cause you had a bad experience living there, you're angry at BMO because they let you go, angry at TD when you don't get what you want, etc... Maybe the problem is not everyone else but you....

Sunny said...

I think you are off track here. I had been a victim of Quebeckers bad leadership. BMO Bank of Montreal fired me. As for TD Waterhouse, they messed up with my account badly and they gave me 50$ cash and free trades to fix their stupid mistake that conduct to the cancellation of my DRIP. I am not the problem. Quebec suck, and you know it.

Someone like me who is that rich and handle her personal finance so well deserved more than just shit coming from retarded Quebeckers.

Anonymous said...

I don't see you playing any leadership role. Can't blame BMO for firing you as for TD doing a mistake, never seen anyone not make any mistakes. As far as super rich, the average canadian family earn as much money as you have saved up in 1 year.
When I see people rant about imperfection elsewhere, most of the time, they are showing their own imperfection.

Anonymous said...

I'm tired of Sunny'svQuebec bashing.
You Madame, sound uneducated when you talk about anything other than stocks and investing. And then you are damned hard to understand.
You may want to just stop writing about Quebec.

Ruth said...

have to agree with anonymous as BCE is almost as good as a GIC only pays better...i have just energy...it pays a lovely dividend NOW but it will be cut and the capital is way down...so you haven't earned a penny...if the capitall is not preserved than the dividend means nothing. i made the mistake in buying rim..but i cant see any comparison with bce ..no dividend with rim and i realize it was a flash in the pan. interesting letters here and funny.

Anonymous said...

Heck, even Pierre Karl Peladeau registers his companies in the US.
But really Sunny, you rant and rave about how bad Quebec is and God Bless Canada and then turn around and are all for Alberta going on its own away from Canada.
Me thinks you need to get your thought straight.
As for BCE, getting $15K of dividends a year is nothing to sneeze at. I'll keep holding them for a while

 

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