Trend profile: Quebecor Inc.

  • 03 April 2011 |
  • Written by  Skot Kortje, Stock Trends Analyst
  • font size
  • Print

Investors anxious about the concerning downward drift of holdings in the media industry should set their phones for stock alerts, watch the tickers on their television screen, and read the paper more frequently.

The Stock: Quebecor Inc. (QBR.B)  Recent price: $34.60

Trend: Intense competition in the media industry has driven fresh moves toward convergence as big players assemble the right mix of content and delivery platforms. The proliferation of smart phone and tablet devices has enabled a business model that emphasises streams of revenue outside the traditional broadcast channels, heightening M&A activity in the industry. BCE Inc.’s (BCE) return to the content arena – a $1.3-billion investment in CTV and its media assets the most high profile evidence of the renewed push toward marrying content with distribution channels.
 
The stock performance of some of these Canadian media conglomerates is a mixed bag of market cheer and trepidation. Yes, BCE and Telus (T) have maintained a Stock Trends Bullish category since the third quarter of 2009, but the stocks of competing national integrated media properties Rogers Communications (RCI.B) and Shaw Communications (SJR.B) have been in bearish trends after petering out in the tail end of last year. The growth trajectory of Quebec-based Cogeco (CGO) shows as the best performing stock in the group, although Torstar (TS.B), which bounced back to its 52-week high last week, rounds out the glass half-full segment of this industry survey with its bullish stock trend. However, other media content stocks are showing weakness, such as Astral Media (ACM.A), Yellow Media (YLO) and Transcontinental (TCL.A), which dropped on high volume last week. Investors anxious about the concerning downward drift of holdings in this dynamic group should set their phones for stock alerts, watch the tickers on their television screen, and read the paper more frequently.
 
The Trade: Quebecor Inc. is another dynamic media conglomerate with considerable market share in the Quebec market. Its purchase of Groupe Videotron and its TVA Group (TVA.B) broadcast properties in 2000 gave it the largest cable operator in La belle province, complementing its stable of French language publishers. It also owns Sun Media group, with Canada’s largest chain of urban tabloids. The company’s dominant media position in Quebec is a result of its growth positioning over the past decade, and its stock performed better than most major Canadian media stocks coming out of the 2008 recession. It was tagged as Stock Trends Bullish in mid-2009 at $19.71.
 
However, shares of Quebecor have been slipping in 2011, falling to the $34 level from their $39.62 high reached in November of last year. Important for shareholders to acknowledge is the impending moving average crossover that will put Quebecor in a Stock Trends Bearish category. Although the broad TSX sentiment remains bullish, (about 76% of stocks are categorized as Stock Trends Bullish), there has been a Bullish trend attrition in recent weeks. A Stock Trends Bearish Crossover – indicating the 13-week moving average trend line has dropped below the 40-week moving average trend line – affirms that the downward sloping trend will act as resistance ahead, making further drops in the share price a likely result. Shareholders should prepare to have their commitment to the stock tested.
 
 
The Upside: This section’s title seems a bit of a misnomer when a sell trade is profiled. The upside of every sell is simply a transfer of risk to other assets. Continued market underperformance puts this stock at a risk of dropping another 10 per cent before technical support kicks in. Other trades beckon market timing investors with better technical signals.
 
The Downside:  Evidence of media stock weakness in broadcast and publishing content areas does not correspond to what is generally considered a relatively strong prospect for our domestic economy. Indeed, some analysts are still keen on Quebecor with its special media position in the province and wireless growth potential. If the share price scales back above $36, this bearish call could be reconsidered.
 
 
 
back to top

Subscriber Testimonials

  • Stock Trends information is part of the base information I review before making a trade.

    Subscriber
  • Hence, anyone who had followed the "Stock Trends" line should have sold their Bre-X shares and, with the windfall, paid for a lifetime subscription to The Globe and Mail and more. Talk about return on investment!

    Muni P., Subscriber

  • Stock Trends Weekly Reporter is an easy way to pick up equities that represent an upward trend.

    Subscriber
  • Just thought I'd call to thank you, Skot. Stock Trends Weekly Reporter helped pay for my daughter's education!

    Peter H., Subscriber

  • You have created and maintained an amazing, highly educational program and I am grateful for your part in getting our retirement funds to the good place they are.

    Karin M., Subscriber
  • I very much like the systematic approach to analyzing stock data, it fits my approach.

    Subscriber
  • I find your website and research very helpful in my stock trading. I have subscribed to several related services in the past and none present their work with “just the facts” as you. Please keep up the great work so that I can continue to learn! 

    Bryan E., Subscriber
  • There is a lot to be gained from comparing trends of how individual stocks are doing within a sector, as well as how the sector is performing relative to the broad market.

    Dudley R., Subscriber

  • I have had the good fortune to be reasonably successful and enjoy the investment process. Your process would be recommended for both experts and those who are new to investing.

    Frank I., Subscriber
  • Thank you for your excellent work and kind approach to your customers.

    Odette C., Subscriber

  • I want to thank you for posting such an excellent guide to technical analysis on the web. You have provided a great service to all of us novice investors.

    Michael C., Stock Trends user
  • Stock Trends analysis quantifies nicely the movement of individual stocks. I’ve found that if the technicals are out of synch with fundamental analysis, it is a wake-up call to make a decision. The Stock Trends Bull/Bear Ratio is useful in identifying major market bottoms and tops. It has always presented a good buying or selling opportunity.

    Charles G., Subscriber
  • I use Stock Trends to help direct my stock picks. Also, following the advice of Stock Trends I have religiously used stop-loss orders and have avoided hanging on to losing stocks for emotional reasons.

    John B., Subscriber
  • I am something of a momentum investor. I find Stock Trends useful as I can look at my portfolio as a “watch list” and quickly see where trends are declining in strength or reversing, so it is particularly useful as a tool in portfolio management regarding sales.

    William C., Subscriber
  • I've followed your recommendations since reading your columns in the Globe & Mail, and finding they published Stock Trends arrows in their financial listings. I do find them a guide to the general market and what I should be avoiding for declining chart trends.
    Has probably saved me the subscription by not rushing into hot stocks!

    Anthony D., Subscriber
  • I've followed a number of Stock Trends picks, and the methodology is solid.

    Doug B., Subscriber

  • An admitted cynic, it's obviously very high praise when he says he likes StockTrends because of its "simplicity, utility, openness, [and] honesty," and in addition to having "no hidden agenda" is "understandably documented [and] historically verifiable." And, he adds, "It lets me see a lot of things without doing a lot of work." Globe and Mail

    Paul W., Subscriber

  • I am fascinated with your service and methodology - it is very impressive. [...] Over the years I have concluded that there are many ways to approach stock investing, but once one has chosen a path, one is better off sticking to it.

    Bob E., Subscriber

  • I am just writing to tell you of my appreciation of your service! It makes so much sense to me. You seem to be an oasis of stability and sensibility in a stockmarket jungle.

    Adrian S., Subscriber

  • Your report is an impressive, excellent tool and I have recommmended it to friends.

    Colin E., Subscriber

Subscription Plans

Subscription Plans

STWR - Monthly

$19.95

Monthly subscription plan to Stock Trends Weekly Reporter - pay your monthly subscription fees by having them automatically charged (PayPal only). Free 7-day trial period. Subscribers may cancel before the end of any subscription month.

STWR - 1 Year Prepaid Subscription

$199.00

1 Year Prepaid subscription to Stock Trends Weekly Reporter. Save 16% off monthly rate!

STWR - 2 Year Prepaid Subscription

$299.00

2 Year Prepaid subscription to Stock Trends Weekly Reporter. Save 37% off monthly rate!

STWR - 3 Year Prepaid Subscription

$399.00

3 Year Prepaid subscription to Stock Trends Weekly Reporter. Save 44% off monthly rate!

Stock Trends Editorial

  • Stock Trends Gauge of Investor Sentiment: A Market at the Crossroads of Renewal
    Stock Trends Gauge of Investor Sentiment: A Market at the Crossroads of Renewal The Stock Trends Gauge of Investor Sentiment has long served as a vital compass for interpreting the emotional currents that drive markets. By measuring the distribution of Bullish and Bearish Stock Trends indicators across all New York Stock Exchange issues, this gauge transforms the abstract notion of “market mood” into a quantifiable, observable pattern of investor behavior. Over the past two decades, it has proven…
    Read more...
  • Stock Trends Picks Confirm Emerging Bullish Leadership
    Stock Trends Picks Confirm Emerging Bullish Leadership There are weeks when the language of the market becomes unmistakable, even before it is broadly understood. The first week of October 2025 feels like such a moment. In the latest Stock Trends Picks of the Week, we observe not the frenzy of a mature bull market but something quieter, more deliberate — a low hum of recovery taking shape across the intricate lattice of…
    Read more...
  • Stock Trends Select Bullish Crossover Portfolio
    Stock Trends Select Bullish Crossover Portfolio The Select Bullish Crossover Portfolio strategy stands at the intersection of systematic inference and market timing. Each position is chosen from the Stock Trends Inference Model’s Select list—names whose probability of outperforming the base random return is favorable across 4, 13, and 40 weeks. From this foundation, the portfolio then isolates Bullish Crossover () signals, capturing securities that have transitioned from neutral or bearish states into…
    Read more...
  • Stocks Highlighted in Fall 2025 Trends
    Stocks Highlighted in Fall 2025 Trends Stock Trends Weekly Reporter highlights two powerful themes this week: Leadership Momentum — stocks in entrenched Bullish states with sustained outperformance — and Volume-Validated Bullish — stocks in Bullish categories attracting unusual accumulation. Together, these lists showcase the names that momentum metrics are backing, and where retail traders can align with strength.
    Read more...
View all Stock Trends Editorials
 
 

Subscription Plans

STWR - Monthly

$19.95/Month

Monthly subscription plan to Stock Trends Weekly Reporter - pay your monthly subscription fees by having them automatically charged (PayPal only). Free 7-day trial period. Subscribers may cancel before the end of any subscription month.

STWR - 1 Year Prepaid Subscription

$199/Year

1 Year Prepaid subscription to Stock Trends Weekly Reporter. Save 16% off monthly rate!

STWR - 2 Year Prepaid Subscription

$299/2 Years

2 Year Prepaid subscription to Stock Trends Weekly Reporter. Save 37% off monthly rate!

STWR - 3 Year Prepaid Subscription

$399/3 Years

3 Year Prepaid subscription to Stock Trends Weekly Reporter. Save 44% off monthly rate!