RE: Having 2nd thoughts about the deal todayI agree with lenticular. Already nibbled at a few Citigroup at higher prices. But frankly, the sector still looks poised to go lower.
Is BCE's cash flow going to plummet in the near future? Unlikely. Growth might moderate but compared to many other sectors, this one is reasonably solid and recession proof.
In fixed income, the flight to quality is driving yields down at one end of the market. At the other end, risk aversion and perceived increased risk are driving sub-investment grade bond yields higher.
If recession is in the cards, the cash flow of cyclicals will decline, and the market value of recession-proof companies will be bid up.
Through all this BCE strikes me as very attractive. Given the complicated nature of the re-organization, initiating this move at the beginning of a recession/severe economic downturn is fortuitous. Material and labour costs should decline.