Back to top

Bear of the Day

We are downgrading our recommendation on Shaw Communications (SJR) to Underperform ahead of the release of its third quarter-fiscal 2012 financial results. The company continues to lose basic cable TV customers, reflecting that management has yet to make a turnaround. Since the company already abandoned its wireless venture, it is very crucial for Shaw Communications to execute video offerings properly.

Furthermore, the Media segment is facing continued softness in the Canadian advertisement market. Apart from the video segment, the company markedly improved its customer base for other offerings in the previous quarter. However, this impressive performance is related to massive spending for aggressive promotional activities, resulting in sheer fall of EBITDA margin and free cash flow.

Consequently, the company reduced its previous outlook for fiscal 2012. We do not find any immediate growth catalyst for Shaw Communications and believe the company will continue to face increasing competitive pressures in the near future. We thus downgrade our rating with a price target of $17, based on 11.3x our fiscal 2012 earnings estimate.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 2.88 +3.22%
CENTURY ALU… CENX 22.22 +3.06%
UNITED CONT… UAL 48.96 +2.68%
ILLUMINA IN… ILMN 174.82 +2.54%
GTT COMMUNI… GTT 11.94 +2.49%