BCE, Inc. (USA) (BCE)

This stock was chosen as part of a group of stocks based upon criteria which focused heavily on dividend yield, cash flow, and balance sheet information.

OOPS! Another attempt at gaming the system gone wrong. Harvested a positive score, but it was only 4.99, so it does not count towards my accuracy. Anyhow, succeeded in lowering my cost basis from $20 to $19.

Not to say that so-called 'Smart Money' is smart, but if OTPP was willing to buy at $42.75, I think it's still worth at least $30 in 2 years. Carrier competition in Canada is still fairly low, however if that changes, it could deal a pretty big blow to margins. I don't see that happening too quickly though. I'm looking for earnings of at least $2.00 in 2010 with buybacks figured in. That could get us to 30 if we were in a 15X earnings type of market, which admittedly we're not.

The stock dropped after the announcement of the unfavorable opinion by KPMG on their solvency post-acquisition. The opinion cause the buyout to fail. Had the opinion been reversed, this stock would have rallied. The rally will happy, albeit slowly. I say it will recover within 6 months.

O ntario Teachers’ Pension Plan did not go through
B others me that the arms in New York still have very large positions
A dividend would be nice
M ay even give a special dividend
A rbitrage is over

Since the collapse of a purchase bid by the Ontario Teachers' Pension Fund the stock has lost its general appeal. The report by KPMG revealed some inherent weakness in the stock's B/S and Income producing ability in the communication sector. In short the stock will probably experience some negative growth, lower dividend expectations and may have to cover some losses if the economy continues to falter. New lows are possible for 2009.

Oversold at $17 due to arb. hedge funds pulling out of failed arb. play. A steller buy with that much cash on hand, a new lease on life and a great divided.

short-term- Hedge funds have to get out post deal collapse - well-run telecom will return to $25-28 in one year + 6% yeild

They will be purchase at 42.75 canadian $ in a few months.

Assuning the deal go through (it should since credit problem seem to have been address), the increase should outperform the stock market and land a good 20%+ profit.

This deal will happen. At $29 the price reflects the value BCE's shahres should have without Teacher's buyout.

Not necessarily foolish, but not dumb either...

sale should proceed

Buyout is getting done at $42.75 in Dec 2008 or Jan 2009. Financing is secure, creditor lawsuit is dead, and the break fee is now up to $1.2B. Yes, that's right. Billion.

Only 1 more quarter of earnings to go. Q2 was decent and Q3 will likely be the same and thus will not derail the deal.

Subscribers for wireless were up in Q2 (the cash cow and where future growth lies). Q3 wireless numbers should be solid. Samsung Instinct is feature rich, well priced, and is being heavily marketed by BCE.

There was a mini-consumer revolt in Canada over iPhone pricing. Rogers requires a 3-year contract (!). The hardware cost was way out of line (they've since reduced it), and the monthly fees are way more expensive than here in the US. This will keep BCE wireless strong, at least until the deal is done.

$37.25 today, $42.75 acquisition price will get you about 14.8% return for holding approx 4 or 5 months. Only downside is that you likely won't get capital gains treatment because of the holding period.

take over at 42.75

REFILLIING, Confident will be aquired.

BCE Inc.(NYSE:BCE)

BCE operates through two segments: wireline and wireless. It is a telecommunications company in Canada.

I believe 2008 will be the year of telecommunications acquisitons and mergers.

low p/e and short term buyout.

Come on... this is a guaranteed stock... the Ontario Teachers Pension Plan will be purchasing BCE for $42.75... OTPP is one of the strongest pension plans in Canada... the deal with definitely be going through...I can make the "call"

A solid company, and the deal is so happening (Just BTW).

One of the biggest communications company in Cananda, they have a monopoly and will thrive, which is why they are going to be bought out!

Just MHO!

This is great arbitrage play. I think that the deal at 42.75 CAN is gonna go forward and this creates a nice profit since the stock is currently around 35-36 CAN.

The Ontario Teachers Pension Plan is buying BCE in a few months for $42 and change. The currently depressed price is driven by speculation that this deal will fall through. I believe that it will go ahead as agreed.