-
JPMorgan Chase & Co. (JPM)
-
Morgan Stanley (MS)
-
Prudential Financial Inc. (PRU)
-
Canadian Western Bank (CWB)
Q: Hi Group is it a no brainer to buy CWB and sit on it until deal goes thru? Looks like around 25% upside simply waiting on the deal to go tru with the only risk being government intervention. What do you think?
also light on Canadian /us banks/financials I own GSY. US has been outperforming Canadian financials by a long shot. What's you thought on financials in general (US or Cad) give me some of your top financial sector picks regardless of US /Canadian
also light on Canadian /us banks/financials I own GSY. US has been outperforming Canadian financials by a long shot. What's you thought on financials in general (US or Cad) give me some of your top financial sector picks regardless of US /Canadian
5i Research Answer:
Our data shows only a 13% arbitrage right now, considering 0.45 NA shares for each CWB share. Not bad, but it is always tough to bet on Canadian regulators. We would consider the arbitrage opportunity 'OK' but not 'great'. The financials in the US are likely doing better simply because the US economy is much stronger. We consider Canada 'OK' but our growth rate needs to improve. We would suggest: EQB, IFC, SLF, TD, RY, JPM, MS, PRU.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in JPM.