“Rogers Communications, Inc. (RCI) is being dropped from the Long-Term Buy List.
“The Canadian media conglomerate posted weak March-quarter results, and both the shares and profit estimates have declined since the release. Investors had braced for a challenging wireless environment; Canadian regulators’ decision to open the wireless market to smaller carriers has stoked new competition and pressured operating profit margins.
“But cable results were also disappointing, raising doubts about whether Rogers can grow revenue and per-share profits this year.
“Tepid operating momentum has dragged down Rogers’ Overall score, now 74, versus 87 at the start of the year. Rogers should be sold. The stock is now rated B (average).”
- Richard J. Moroney, CFA, Dow Theory Forecasts, May 14, 2012