BCE Profit Spikes!

Good news!

As I suspected when I purchased shares of BCE Inc. (BCE) one month ago, they have released excellent, but one time, 4th quarter earnings for 2006.  Here is what the Globe and Mail had to say:

BCE Inc. said profit rose 69 per cent in the fourth quarter, driven by a one-time gain along with growth at its wireless business.

Profit at Canada’s biggest telephone company climbed to $699-million, or 84 cents a share, in the three months ended Dec. 31, from $413-million, or 44 cents, in the year-earlier period. An investment gain of $412-million for the recognition of a future tax asset was a big contributor to the bottom line.

Revenue advanced 0.2 per cent to $4.55-billion in the quarter from $4.54-billion a year ago.

I purchased shares of BCE because my thoughts were that at my purchase price of $25.75 USD, the shares were significantly off of their highs from the previous month and approaching the 50-day moving average.

The attractive 4.40% Yield was also a factor in my purchase as it increased the yield of my portfolio.  Although against the grain of my dividend growth theory, I believe there is room for capital growth due to the acquisition targets taht BCE may now have in their sights.  One acquisition in particular is Manitoba Telecom Services (MBT.TO) , whose share price has rebounded due to the possibility of a takeover.

Here’s to hoping the street reacts positively to the BCE news today!

 

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