‘It stopped being a growth story’: Why this portfolio manager dropped Rogers
BNN Bloomberg
Portfolio Manager Barry Schwartz said there needs to be significant change at Rogers Communications Inc. for the stock to be attractive enough for his shop to buy back into it.
Portfolio Manager Barry Schwartz said there needs to be significant change at Rogers Communications Inc. for the stock to be attractive enough for his shop to buy back into it.
“It has not been a great environment for this company to work,” said Schwartz, chief investment officer and portfolio manager at Baskin Wealth Management, in an interview Monday. “They have all the pieces in place, and I think the Shaw deal is really transformational. But now, of course, does it close?”
Schwartz said Baskin Wealth owned Rogers for clients between 2015 and 2020, but exited early in the pandemic when it “stopped being a growth story.”
Without knowing about the corporate and family drama that was about to unfold at the Canadian telecommunications giant, Schwartz said Baskin Wealth exited Rogers because it was bound to miss out on revenue from roaming fees when travel came to a screeching halt as the COVID-19 pandemic took hold. Schwartz also cited Rogers’ move to an unlimited model for wireless customers, which limited its ability to charge overage fees.
His comments come the same day the boardroom feud at Rogers moves to British Columbia’s Supreme Court, as parties involved seek to confirm the company’s rightful board of directors.
The governance uncertainty is playing out as Rogers seeks to close its proposed $20-billion takeover of Shaw Communications Inc.
