All Canadian and U.S. video providers have now reported Q1 calendar results. With weaker-than-expected video results, we believe that the negative sentiment on U.S. video distribution has ramped up. While CMCSA has been experiencing weakness in video subscriber trends since Q3/17, Charter’s weaker-than-expected video results and AT&T’s poor results in the Entertainment segment (including linear and non-linear video services) have added to the concerns. Many investors of Canadian telecom and cable stocks are worried that it is just a matter of time before the Canadian video market experiences the same trends as those in the United States, since Canadians and Americans share many similarities with respect to the nature of the content consumed and the way that content is consumed.
I want to open this blog by restating something I said earlier when writing on the subject of water investing a few months ago:
‘That the world is facing an acute water shortage is, increasingly, a truism. Large regions of major countries – such as the United States – are in drought or have questionable long-term access to a water supply.
While this may not appear to be a significant issue for us in Canada – we own 7% of the world’s supply of renewable fresh water,1 for example – water as an investment subject is an obvious winner.’
Scotia Wealth Management Portfolio Advisory Group