BCE Retail Investors Are So Predictable...and the Hedge Funds know exactly how to capitalize on the current negativity.
As a comparison, have a look at TC Energy (TRP-TSE) in April of 2023 after the 'sky is falling' news came out on TC Energy and the stock dropped from $56 to $44 in no time, until investors came to their senses. Same retail chatter about cutting TRP's dividend, etc, etc. Sound familiar?
Now have a look at BCE's chart. BCE was just over $65 CAD in May 2023 and below $46 today and retail is still talking a potential dividend cut, the sky falling, etc, etc. So predictable!
While the fundamentals for BCE are a bit cloudy in the short term, thanks to our Liberal Government who believes the largest Telecom company in Canada should pay to build out the nations leading telecom infrastructure and then let their competion use that infrastructure for free, but this too shall pass.
This Liberal mentality is akin to if you were leasing building space in a prime business location to operate a business out of and this government suddenly mandated that you had to let your competitor street vendor move in for FREE so they could sell their directly competing product(s) right beside you. And apparenlty you should just smile and like it. Only the Liberals and NDP could see this practice as logical because it's all apparently necessary in the name of fair competition and consumer protectionism! In other countries they call this socialism and look how well that's working for the them, the likes of Cuba, Argentina, etc. Cuba is currently in such dire straits Russia is sending them an oil tanker of oil to help them keep their economy going, but no one is sure how Cuba will pay for it (oh not to worry Putin will figure something out).
BCE is a bohemoth and they'll survive this little set back that's currently at the expense of BCE shareholders. In the meantime, get your cheap shares and enjoy the dividend because when the next Canadian election is done we'll finally have a government in place with some common sense that understands the basic fundamentals of running business. They realize the non-socialist investors and taxpayers have had quite enough of these types of socialist policies, taxation and running up debt levels that will take the new Conservative government years to get back under control.
BCE's technicals are showing the shares are 'Oversold' and are either at or very near a bottom and so when the Hedge Funds have finally milked the last retail investor for their cheap shares, don't worry they'll go long and run this thing back up to much higher levels than today all while retail is tripping over themselves trying to buy their shares back. Have a look at a 1 year chart of TRP and compare it with a 1 year chart of BCE..see a similar pattern, if not yet you will?
My opinion only, please DYODD.
HB77