Thursday, December 2, 2021

An International Equity holding: TELUS (TU, $22.89): “Telus more about the Future” By: Bassel Fouad, AIM Student at Marquette University

 TELUS (TU, $22.89): “Telus more about the Future”

 By: Bassel Fouad, AIM Student at Marquette University

Disclosure: The AIM Equity Fund currently holds this position. This article was written by myself, and it expresses my own opinions. I am not receiving compensation for it and I have no business relationship with any company whose stock is mentioned in this article.


       Telus Communications Inc. (NYSE:TU) is a telecommunications company that specializes in telecommunication services and products primarily for wireless and wireline voice and data, operating in the Wireless and Wireline segments.

       Telus brings 5G to Quesnel as part of a larger $13 billion investment in British Columbia, being just one of the more recent expansion projects for the company.

       TELUS and Genetec partner to enable Canadian businesses to easily monitor the security of their businesses from anywhere at any time.

       Telus announces two new health-tech projects, partnering with Bell.

Key Points

Telus’s ongoing expansion of their next-generation 5G technology bridging time and distance, they are allowing residents to live and work without compromising productivity or economic opportunity. With the recent development of 5G expansion, Telus $13 billion investment in British Columbia throughout 2024 allows easier accessibility to it’s next-gen 5G network throughout more regions of Canada. Telus has spent over $240 billion in network infrastructure, operations, and spectrum across Canada since 2000 and aims to be available  to about 70% percent of the Canadian population. Telus’s other recent projects for expansion include a $90 million expansion in the Greater Montreal area.

TELUS and Genetec offer businesses more time to focus on core operations with the reliability and affordability of cloud-based video surveillance. With Telus and Genetec collaborating on simplifying video surveillance for small and medium-sized businesses, it bundles Telus’s security cameras with Genetec’s cloud subscription-based video monitoring solution called Stratocast. Stratocast allows businesses to no longer operate expensive video recording hardware that can only store and stream footage since it can easily monitor their video from multiple locations through cameras that are connected to the cloud.

Telus is working with REACH Niagara to create a mobile health clinic, which would offer medical care to marginalized communities living in the southern Ontario region. The “clinic-on-wheels' is equipped with Telus Health’s electronic medical record (EMR) technology, TelusMobiltiy services and TElus LTE Wi-Fi network technology. This mobile clinic is designed to enable easier access to COVID-19 testing, harm reduction services, mental health care, reproductive health services, and etc. to the at-risk, low-income population living in/near Niagara. Telus’ Health for Good Program contributed a $10 million investment.

What has the stock done lately?

Over the past month, Telus has increased from $21.83 to $22.79, resulting in an increase of 3.03%. Telus has also had an increase in the 6 month chart, with the stock being at $20.71, to the current price of $22.79, resulting in a 10.04% increase, with an notable increase in the one month period of mid-July to mid-August, after reporting strong numbers in their Q2 FY’21 report.

Past Year Performance

Telus’s stock has increased in price compared to last year, starting at $17.02 in October 2020 and is currently (October 2021) priced at $22.79, resulting in a 33.9% increase. The stock’s Q3 FY’21 Earnings Report is on November 5, 2021 in the pre-market hours.

Source: FactSet

 My Takeaway

Since being added to the AIM international portfolio in November of 2014 at $20.70, it has had a total return of 9.88% in value. Telus’s focus on the expansion of availability for their 5G network will align with the current world’s demand for 5G network infrastructure. With Telus recently partnering with Generec to provide a form of cloud storage for security purposes, as well as Telus working with REACH Niagara to provide a mobile clinic, Telus gives excitement to investors for what is in store for the future.