Landmark BCE takeover in doubt
- Thread starter daTerminehtor
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I bought some BCE shares a while ago with the view of a quick profit, but looks like it cannot be.
However, BCE is still a very good company, with sound fundamentals, a large cash reserve (more than 2 billion $), with a bright future. Plus it pays a heft dividend, much more than can be obtained by GIC or bonds. Don’t count BCE out; it will be around for a long time. It is just that it won’t go private and those who were expecting 42$ a share (like me) are going to be disappointed.
However, BCE is still a very good company, with sound fundamentals, a large cash reserve (more than 2 billion $), with a bright future. Plus it pays a heft dividend, much more than can be obtained by GIC or bonds. Don’t count BCE out; it will be around for a long time. It is just that it won’t go private and those who were expecting 42$ a share (like me) are going to be disappointed.
I won't be selling my BCE shares this year, not with them losing 40% of their value overnight. BCE will carry on though, I imagine they will reinstate stock dividends if the sale is officially off.
It is not officially off yet, but it is extremely unlikely that it will happen. The only way it can happen is if the credit rating agency comes back with a positive report on 11th December. However, they came back with a negative preliminary report today, and they have said it is highly unlikely that they will come up with a positive report on 11th December.
Anyway, BCE is still a good investment.
Do you work for BCE? I think it is a great company, they (Bell Canada) are my long distance carrier. I haven’t had any problems with them.
In the coming recovery (I know talking of recovery seems like crazy talk at present, but it is not, what goes down invariably comes up) BCE promises to do very well. I assume there will be some restructuring if the takeover doesn’t go through.
In the coming recovery (I know talking of recovery seems like crazy talk at present, but it is not, what goes down invariably comes up) BCE promises to do very well. I assume there will be some restructuring if the takeover doesn’t go through.
It is not a question of firing management, Scratch. I assume for the past few months BCE was preparing to become a private company (they naturally must have assumed that the takeover would go ahead). Now that it looks like it will remain a public company, I would think some changes in the structure, in the personnel may be in order.
There is no doubt that BCE is in trouble. There is also no doubt that BCE will remain around, in some capacity.
Having said that, there is also no doubt that the 'culture' that is MaBell must also change. Those that have worked for Ma in the past (and still do) will attest to this.
Without an improvement in customer service, BCE will remain in trouble.
Having said that, there is also no doubt that the 'culture' that is MaBell must also change. Those that have worked for Ma in the past (and still do) will attest to this.
Without an improvement in customer service, BCE will remain in trouble.
Generally speaking, those who provide the service here are doing their best with what they're given to work with. The first level support (those that install/repair) are clearly given too much to do (in terms of not just installing/repairing). One could also say those that provide a service 'out of Canada' are also doing their best, with what their given. It just seems that it's not enough. End users base their opinion on their interaction with those that provide the service and there's little argument that the end user isn't satisfied.
I used to work for one of the law firms involved in that 'deal'. They seemed pretty pleased with themselves. :roll:
BCE is NOT in trouble, where did you read that? What is in trouble is the plans by the Teachers’ Pension Plan to but out BCE and turn it into a private company. It looks like that isn’t going to happen.
However, by all indications (earnings, profitability, price to earnings ratio etc.), BCE is a very sound company with bright prospects.
Bell is not going to disappear. You realize that Bell is more then just telephones and internet?
What culture is it you speak of? I work for bell and I'm a little confused about your statement. You realize that not all BCE employees are CSR's and we also span multiple business lines?
First level support does not repair anything, you are confusing technicians with CSR's.
Customers demand lower prices and shareholders demand higher dividends, something has to give unfortunately when it comes to satisfying both, namely outsourcing to India etc.
So you speak for all bell customers?
BCE shares were artificially too high. Since 42 $ per share was promised on 12 December, the share price was hovering around that value (38$). Now that the buyout may not go through, the shares are down to their proper vales, along with all the market.
I remember about a year ago before the buyout was announced, BCE share was around 30$. The market is down from 15,000 to 8500, and BCE shares were up from 30$ to 38$. Clearly they were held up artificially by the buyout.
Without the buyout to prop them up, they reflect the correct value (25$) along with the rest of the market).
However, the plunge in share prices in no way indicates that BCE is in trouble, it only means that the price cannot remain artificially high (without the buyout), and reflects the correct value of the stock in line with the market. BCE remains a very solid company, with excellent long term prospects.
After all, Teachers’ Plan wouldn’t agree to pay 42 $ per share for BCE, unless it was really worth that much.
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