Q: Telus appears to be diversifying itself with Telus Agriculture and now Telus Health. What would be your opinion on these initiatives and their potential?
What kind of timeframe should an investor have in mind for them?
Jack
What kind of timeframe should an investor have in mind for them?
Jack
5i Research Answer:
We like its diversification strategy. T has been in health for some time, and has made several Canadian acquisitions within the sector in order to grow faster. We have no issue with the strategy, but both divisions are not really material to the company yet. Its telecom business still dominates and likely will for at least the next decade, unless the company were to go on a massive acquisition spree, which we would deem as quite unlikely. For an investment in T, we would suggest a timeframe of at least three years, considering current struggles within the sector.