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TMFBomb (95.85)

Is It Time to Buy Banks?



February 25, 2009 – Comments (7)

A little cross-promotion action...wrote an article on whether we should be buying bank stocks now...



7 Comments – Post Your Own

#1) On February 25, 2009 at 10:53 AM, kdakota630 (29.94) wrote:

The only bank stocks I would buy are Canadian banks.

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#2) On February 25, 2009 at 7:27 PM, quitsmoking (< 20) wrote:

Any research that you know of on Canadian banks? I know some might be affected by oil falling because of oil sands. I did buy some KRE because I think regional banks will benefit from the troubles of the big banks.


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#3) On February 25, 2009 at 7:46 PM, kdakota630 (29.94) wrote:

This is relatively old news, but our banking system was ranked best in the world back in October.

Canada has done more than survive this financial crisis. The country is positively thriving in it. Canadian banks are well capitalized and poised to take advantage of opportunities that American and European banks cannot seize. The Toronto Dominion Bank, for example, was the 15th-largest bank in North America one year ago. Now it is the fifth-largest. It hasn't grown in size; the others have all shrunk.

Less Risk in Canadian Banks  (February 11th)

Ahhhh... here's the one I was looking for:


And if you're looking for numbers, this one is probably the best:

Plus, if you're concerned about the American dollar being devalued, you could buy the Canadian banks on the Canadian market to take advantage of the currently strong U.S. dollar.  Personally I wouldn't buy Canadian banks yet since I think they'll continue to lose value with financials in general.

Hope that helps. Report this comment
#4) On February 25, 2009 at 7:55 PM, Seano67 (24.46) wrote:

Canadian banks are great, and in my opinion are what banks are 'supposed' to be and always used to be, rock solid, smart, prudent and  conservative with your money as well as their own.

I own shares in Bank of Nova Scotia and absolutely love the company. They do not have the domestic market share of some of the other heavyweight Canadian banks, but BNS has far and away the largest international presence of all Canadian banks, and that presence is growing and promises to be extremely lucrative. They are all over Latin America, and I read the other day that BNS has now established a presence in over 50 countries. 

It's a great bank. I love BNS. :)

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#5) On February 25, 2009 at 8:01 PM, kdakota630 (29.94) wrote:

Great divident yields, too.

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#6) On February 25, 2009 at 8:41 PM, Seano67 (24.46) wrote:

"Great divident yields, too."


True. And I just love that sense of solidity and stability, ya know? Especially in times like these, aye yi yi. I consider these Canadian banks to be like vaults, like banks used to be back in my father's and grandfather's day. They're not involved in any of this incredibly risky, speculative, and wildly irresponsible if not borderline criminal activity that has led so many of the large American and European banks right down the toilet. These Canadians are just banks, responsibly doing business, conservatively managing money- and in the end, everybody wins. Everybody makes money. 

I agree with you too, despite how good they are, it might not be time to buy in just yet. These guys have been punished right along with all the rest of the financials, which is unfair, but the markets as we know are not always fair. BNS has dropped from +30 to under 21 dollars per share in the past month and a half based on nothing more than the fact that they're a bank, and are thus tainted by association. They're fairly valued at around $56-58 bucks right now, and I have no doubt but that this investment is going to pay off big-time. 

And Canadian banks are just socially responsible too. You know, to have the heads of BNS, Toronto Dominion, Bank of Montreal, Royal Bank and others voluntarily step forward to announce that executive pay and bonuses are going to be reduced this year due to these unprecedented economic times, and actually seeming happy and willing to do that rather than resentful of it like so many of their American counterparts- that says a lot to me. And that sense of community and social responsibility is another one of the reasons why I love Scotiabank. I mean these guys sponsor youth hockey leagues as well as all sorts of other community-related activities and initiatives, and they are annually voted one of the best companies in Canada to work for.

I'm just a huge fan.

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#7) On February 25, 2009 at 10:22 PM, quitsmoking (< 20) wrote:

Thanks for the feedback on Canadian Banks, I'll do some homework on them! Dave


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