Updating MANITOBA TELECOM SERVICES INC., CANADA BREAD CO. LTD. and ARBOR MEMORIAL SERVICES INC.

Article Excerpt

MANITOBA TELECOM SERVICES INC. $35 (Toronto symbol MBT; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 64.7 million; Market cap: $2.3 billion; Price-to-sales ratio: 1.2; Dividend yield: 7.4%; SI Rating: Average) has raised $200 million by selling new 10-year bonds that yield 5.625%. This cash will help the company fund a new high-speed wireless network that it is building in Manitoba in partnership with Rogers Communications Inc. (Toronto symbol RCI.B). Manitoba Telecom will spend $70 million on this new network, which should be ready by early 2011. The company also plans to spend $40 million over the next three years on upgrading its billing systems. As of September 30, 2009, Manitoba Telecom’s long-term debt was $853.9 million. If you add the proceeds from the bond sale, its long-term debt is still a manageable 46% of its market cap. Manitoba Telecom is a buy. CANADA BREAD CO. LTD. $54 (Toronto symbol CBY; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 25.4 million; Market cap: $1.4 billion; Price-to-sales…

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