Q: BMO is getting back up to its 52 week high. However, it has been in this range twice before in this year and then they announce their quarterly results and the stock drops 10%. They will be announcing their results in about 4 weeks. Is it time to reduce my exposure to see what happens with the results?
5i Research Answer:
We never like trying to game a company's quarterly results. One needs to be right on the results, and the market's reaction to the same. One also is at the mercy of the overall market and interest rates, and the fourth quarter historically is very positive for stocks in general. The stock is a bit more expensive than peers, but is still down 2% for the year. With three interest rate cuts in Canada and more this week (likely) we would not be inclined to sell, especially if taxes apply.