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JimVanMeerten (58.33)

Royal Bank deserves a royal look



February 25, 2011 – Comments (1) | RELATED TICKERS: RY

Not all foreign banks are toxic.  Canada's underwriting of loans was much more conservative that in the US.  Royal Bank of Canada (RY)is just such a bank so I added it to the Barchart Van Meerten New High model portfolio today.

ROYAL BANK of Canada  operates under the master brand name of RBC. They are Canada's largest bank as measured by assets and market capitalization, and one of North America's leading diversified financial services companies. They provide personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services on a global basis. They have employee approximately Seventy Thousant full- and part-time employees who serve more than 15 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 36 other countries.

Technical Factors:

1 - 96% Barchart technical buy signal

2 - 15 new highs and up 8.54% in the last month

3 - Relative strength Index 71.41% and rising

4 - Trades around 58.07 with a 50 day moving average of 53.63

Fundamental Factors:

1 - Wall Street brokerages have published 1 buy and 2 hold recommendations

2 - Revenue is expected to increase by 5.50% next year

3- Earnings are estimated to increase by 19.50% this year, 16.80% next year and 10.00 annually for the next 5 years

Investor Sentiment:

1 - The CAPS members on Motley Fool think the stock will beat the market by a vote of 557 to 39

2 - The All Stars are in agreement with a 202 to 9 vote

Jim Van Meerten is an analyst for  Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs  in his daily blog -- Barchart Portfolio Blogs.

Through Marketocracy Capital Management  you can have a Separately Managed Account that mirrors his Barchart Van Meerten New High model portfolio.

1 Comments – Post Your Own

#1) On February 25, 2011 at 8:27 PM, soycapital (< 20) wrote:

I bought some RY, BNS, TD back in 2009 RY up 65%, BNS up 103%, TD up 25% (bought it somewhat later). I was a little leery of US banks at the time (still am). These banks pay pretty good divis also, wish I'd bought more of course at this point.

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