Investment Q&A

Q: Hello,
I have been holding Laurentien Bank for a few years thinking it was 'cheap' as it was trading below book value. It's done terribly should I hold/sell any recommendations on an alternative holding for the long term.

Q: Hello guys,

I was hoping you could help to interpret the reports from Canada's banks this past week.
On the face of it, earnings did great compared to expectations. However they largely reported these gains based on outsized returns from their capital markets divisions. I am trying to make sense of what this means in the short and long term.
Firstly, capital markets are comparatively small parts of their businesses (at RY it is normally 20% of income). Is it also safe to say that this is a reflection of both turmoil and government stimulation, and I wonder if governments will be remiss to see its money land there. A d is it repeatable.
Second, with low rates on the horizon increasingly, the Fed and other central banks appear torn about the inflation theses that they have and what to do next. For banks I understand this means margin erosion as well as potentially demand destruction from customers.

Any thoughts on progress of the sector and possible ripples to the economy are greatly appreciated.

Thanks,

Peter

Q: Hi,
In a previous question you responded:
" We would rank the banks: TD, RY, BNS"
Should I sell my BNS and swap for TD or RY? I've held it for years and basically just received the dividends.
Thanks

Q: I have about 29.3% of my portfolio in financials. Is this too much? I'm above water on all except BNS with FSZ about even if I include the dividend. Which would you suggest dropping if I'm too heavy in this area & in what order? Thanks,as always for your wonderful guidance
Dave

Q: In a straight-up comparison of BMO (Bank of Montreal) versus RY (Royal Bank), for a long-term position (non-registered account), which one would you buy, and why? (I've owned BMO for >25 years, never owned Royal, but because of ongoing portfolio adjustments, I'm in a position where I want to own one of these two banks, for the long-term. Note: I already have long-standing positions in TD Bank and National Bank, in my Canadian portfolio, so another aspect to my question is which one better complements my existing Canadian bank holdings. In my situation, there are no particular tax implications for buying BMO vs RY.)

Q: I have been watching volatility within a narrow range for Royal Bank and Canopy Growth (WEED)for months now. I have $96 RY options for January 21 and same date for WEED $30 options. Are you optimistic about either or both increasing by 20% or more in the next six months?

Q: top 3 american, top 3 canadian, banks to invest in ?, and a reasonable projection and why, or do you not recommend banks at this time?

thanks

Q: Do you feel there is a need to go into the US to get additional financial exposure, into something like GS or JPM? Or would RY be sufficiently diversified given its size, and international diversification.

Q: Top 5 picks for monthly income please and thanks.

Q: Is this a good time to be investing in banks? Any preference between TD and Royal?

Q: if I want to received dividend in US , will it be advisable to buy co. like Enb. in U$., or other dual listing companies, like RY,TD. or will it be better to simply buy equivalent US listed Co. instead. Thank you as always.

Q: If you have to to invest in a Canadian bank now, wich one would be your first choice, thank you

Q: What are your thoughts on selling these two bank stocks I am about 25% down on both going on three years , thinking of buying Td or Ry.
Larry

Q: Re Fred’s question about longterm gains on RY
canadastockchannel.com has this info
If bought on Jan4, 2000, $1 worth of RY would be worth $12.46
assuming dividends are re-invested on a tax free basis (ex. RRSP)
If dividends are not re-invested, on a total return basis (including dividends, but still no tax paid) your $1 is worth $8.75.
You can enter different dates to get exactly what you want.
I personally find this type of analysis instructive but I know not everyone is a fan.

Q: If I had put $100,000 into RY 20 years ago with all dividends reinvested, can you tell me what it would be worth today?

This is not a rhetorical question. I recently came to realize that a close friend put $100,000 RRSP into RY in 1989 as he has now retired from there. As he is an unsophisticated investor, he just left it there. But as there have been withdrawals over the years, it is difficult to determine the actual growth. It is now worth a tidy little sum. This is, in my estimation, a significant argument for a buy and hold strategy although most would also argue for more diversification.

Q: hi, dear team
for banks or reit which one your guys is a good buy now for long term investment ? like ten years.

appreciate!

Jacky

Q: BNS is up AFTER they posted loss, increased reserve provisions etc., BUT it seems ALL the banks are up today even though news about their future is still pending!
Should we "read" that "birds of a feather" phenomenon is operating here and the market has decided to ignore the pending results of other bans and is into a full blown buy mode!
Do you think it is risky or reasonable response to the current situation and one can buy bank stocks now? I know your favorites are RY,BNS,TD.

Q: Hi All:

With the negative feeling about banks for loan loss, etc. I wonder if I should let go either TD or RY or both and take the loss, then watch to buy back later. the total market value is about 3.7% of my total portfolio, and each one is almost equal in market value. The loss in TD is 19+% and RY 15+%. I also own NA with a gain and only 1.5+% in my portfolio.

Thank you.
L

Q: What do you think the main reason for the current decline is among these banks. Is it fear of loan losses, fear of what the companies are to report next week or the sell in May mentality? How much pessimism is baked into these stocks already?
Thanks, Mike

Q: Not only B of A (today's Globe) but quite a few analysts and BNN Guests say that Canadian Banks are going to take a hit b/c of earnings, poor reserves, Loan write offs etc., With that in mind is it worth selling BNS,RBC,TD and buy them back later ? In RRSPs/TFSAs. So, capital gains/loss is a non issue. I "lose" 60 $ in trading fees. But selling now can save me from losing a lot more if they tumble a lot AND I don't have to wait for a longer period of time for them to recover. ( You know the cliché, if a stock goes down by 50%, I have to make 100% to break even!)