Rogers Communication Shares Rise on Revenue NewsRogers Communications Inc. beat estimates after posting strong wireless sales during the back-to-school period and a revenue increase in its media and cable businesses.
Canada’s largest wireless provider earned C$1.27 a share on an adjusted basis, higher than the C$1.09 expected by analysts tracked by Bloomberg. The company added 225,000 postpaid wireless phone customers, about 27% more than forecasts.
The company didn’t change its guidance for the year.
The results suggest Rogers is benefiting from Canada’s strong immigration — including an influx of foreign students — and from its integration of Shaw Communications Inc., which Rogers acquired in April for about C$20 billion ($14.5 billion).
In the weeks after the deal closed, Rogers shares spiked to their highest level in almost a year, but they’ve fallen 17% since the beginning of May, in line with major peers and the S&P/TSX Communication Services Sector subindex.
Rogers' mobile phone and internet additions were 279,000 in the period, up 52,000 from last year at this time. Of the new additions, 261,000 were new mobile phone connections, while internet net loading was 18,000, up 12,000 year-over-year thanks to growth in both the eastern and western regions of Canada.
Canada telecom shares, which are bought by some investors for dividend payouts, have been hurt by the surge in government bond yields. The regulatory environment has also turned less favorable recently as the government, under pressure from voters frustrated about the high cost of living, tries to generate more price competition.
In the latest example, Canada’s telecom regulator said this week it will force phone companies in Ontario and Quebec to open up their “fiber to the home” networks that provide high-speed broadband to households. Next year they’ll have to sell access to those networks to independent internet resellers at prices prescribed by the regulator.
Price Momentum
RCI is trading in the middle of its 52-week range and below its 200-day simple moving average.
What does this mean?
Investors are still evaluating the share price, but the stock still appears to have some downward momentum.
Rogers
Rogers Communication RCI.B - Weakness AheadI have been following Rogers Communication for a while watching price unfold as the company has been in the news over the last few months.
Firstly, Rogers would like to purchase Shaw communications which will constrict wireless competition landscape even further within Canada and secondly, they had a serious country wide outage a few weeks back which affected millions of their consumers as well as businesses such as Interac and emergency services. The outage revealed how vulnerable their infrastructure is to being affected as they appear to have less than reliable redundancy systems in place. Management noted they will be investing heavily into their infrastructure so this downtime issue will not happen again. Millions will be spend on their networks which will likely affect stock price.
Looking at the long term monthly timeframe, I see continued weakness in RCI.B after it breached an old Feb-2019 all time high of $73.82 but was strongly rejected with price currently sitting in the middle of the dealing range between $73.82 and $46.81.
Under current price, we have a few levels that I believe price will reach for.
1st target = 56.00
2nd target = 54.70
3rd target = 50.70
4th target = 46.80
Ultimate target for the stock in my opinion is $40.0. Feel free to comment on my idea. Feedback is always appreciated.
Wheat descending wedge!Wheat appears to be nearing the completion of a major ascending wedge that spans 4-5 years. Best way to take advantage of this would be a wide entry with a safe stop once a bottoming pattern appears on the daily/weekly. My guess is we won't see a bottom until late 2016 or maybe early 2017.
Martin Armstrong has posted about the global *cooling* (not warming) that should begin to impact crop production sending prices sky high. This data adds quite a bit of fundamental confluence on top of the beautiful techs, making the trade even more enticing.
Jim Rogers also sees agriculture *prices* improving in the future in his recent interview with Real Vision TV. He has been saying this for a few years now but also admits he's often VERY early to a trade.
I'll be watching this trade closely for a bottom, going to be a good one!