Should investors hang up on BCE shares before election day?

Justin Trudeau has made the relatively high cost of Canadian of cell phone data an election issue by promising to slash subscriber costs by up to 25%. Do insiders at BCE sense riskier times ahead for the domestic cell phone industry as we approach election day on October 21st? INK Research tackles that question in the September 25th Morning Report and Ultra Money video. Below is a free version of the video that was distributed earlier on INK Ultra Money.

INK trading day morning reports and videos are available through INKResearch.com or Canadian Insider Club Ultra memberships. INK is subscriber supported and does not accept payment for stock coverage.

Script (check against delivery):

BCE stock has been setting new highs

but so has insider selling. Over the past 90 days, insiders have sold $72 million worth of stock in the public market, a four-year high. The recent selling came before the news last weekend that if reelected, Justin Trudeau would target a 25% reduction in cell phone bills for Canadians over four years. Should a minority government situation develop, there is a risk that politicians of all stripes may jump on the band wagaon to cut cell phone bills. BCE has enjoyed annual EPS growth over the past 5 years of 4%, but that is below the Telecom sector average of 4.8%. Moreover, the growth took place even as BCE enjoys strong market power in the wireless industry. Together with Rogers and Telus, it is in a threesome that accounts for 90% of wireless Canadian subscribers according to the latest industry data. While the chances may be small that politicans move to shake up the wireless industry, the risk may require an increase in the BCE risk premium and its associated dividend yield which is curently 4.9%. Such a scenario has the potential lead to a period of prolonged share price underperformance. The best outcome for BCE shareholders at this point would likely be a majority government of any that feels little urgency tinker with the structure of the wireless industry. Our report which is not a recommendation to buy or sell securities is available through INKResearch.com (https://www.inkresearch.com/) or the Canadian Insider Club ( https://www.canadianinsider.com/). Good luck, friends, and thanks for listening!