Q: I own both of these and have a similar loss in each. Want to reduce amount of telcos. Which would you sell for a loss, or would you reduce both by half. Which would you keep for the longer term or some of both. Retired. Like the income but want some growth. I'm OK to hold for longer term.
Thank you.
Thank you.
5i Research Answer:
The telco industry is experiencing a tough time due to increasing capex, high interest rates on large debt loads, and weak organic growth (limited pricing power due to intense competition). If investors want to get exposure to potential upside from the recovery (the timing is highly uncertain), we think BCE is a safer bet due to its history of operational efficiency. We would be comfortable selling T and maintaining BCE as a sole exposure to the telco industry.