Blogs & Comment

BCE shares

I have been wondering for awhile now when to unload aposition in BCE Inc. shares. Long-time readersmay recall thatBCE was purchased for a tradeafter its price plunged more than 30% onnews (in the fall of 2008) that the privatization deal was dead.
For a long time, the position was underwater and didnt look so great. But then it started creeping up and now is showing a gain over 20% — while paying adividend over 6% per year.
The new executive team, led by Mr. Cope, seems to know how to manage a company.I don’t recall Sabia’s initiatives being terribly effective. Mind you there was the privatization effort; it did seem to boost the value of stock options purchased by executives just before the bid was announced.
As for when to close this trade,there doesn’t seem to be any need to rush.INK Research reported today more insider buying at BCE. Director and former Royal Bank deputy chair, Tony Fell, bought 20,850 shares on May 10th, between the prices of $30.89 and $30.91, it said.
This latest buying comes when BCE sharesare exhibiting relative strength: theyre up nearly 5% over the past month while the market is flat lining. And the buying builds on previous insider buying: Over the past year, insider ownership at BCE has been trending higher, led by acquisitions of company directors, notes INK Research.