Q: I own both BCE { up 2.37% in 7 years of ownership not including dividends } and T { up 15% in 7 years of ownership not including dividends } and am going to sell at least one. { Neither have been particularly exciting } .... I'm inclined to keep Telus but the current problems with TIXT are making me hesitate. Just how much do you think TIXT is going to effect Telus's earnings going forward ? And if it were " you " and you had to sell one which would it be ?
5i Research Answer:
TIXT is a fairly small company and other than 'reputation' damage and a distraction, it should not be hugely material to Telus. Still, all things considered, we think BCE looks better right now. It is more diversified and much cheaper on valuation. We would sell T of the two.