Bank of Nova Scotia (BNS.TO)

Working way through new identity. Would wait to invest. Is a "show me" story at this time. Better names in the Canadian banking sector. Would rather invest in National Bank. 

Would not recommend selling - but does not own shares either. Believes higher quality names available in Canadian banking sector. New CEO has helped company, but will require major changes. Recent expansion in South America did not work out (returns did not make up for credit risk). Business has oligopoly in Canada with steady dividend. Good for investors to hold. 

We're in a credit cycle. His opinion is that economy will not be prosperous, GDP not rising. BNS will still make money, but earnings potentially won't accelerate as fast as they could. Dividend yields are similar.

He owns both and likes both these children. Have to ask yourself what kind of risk do you want in your portfolio? Do you want something more stable like a power utility, which will potentially be more or less impacted by the movement of interest rates? Or do you want something with international exposure to higher-growth markets like Latin America, but that has credit risk embedded in its business and will take some hits from economic slowdown?

Bank stocks haven't performed particularly well, and nothing major has changed in the banking sector. Not a high growth name. Own to clip the dividend and get 3-4% on top. Yield's around 6%, which gives you double-digit returns. 

Not the best stock out there, but fine for the passive investor who wants dividend income. Could get in around $62-63, ride back up to $70-80 over the next couple of years.

Nice 6.5% dividend yield. Traded down due to softness in Central and South American markets, presenting a buying opportunity. Reversion-to-the-mean investment story. Already up 15% from October 2023, not including dividend. If got back to $95, would be a 46% return plus divvie. Buy now for quality, attractive multiple, high yield, and a margin of safety.

It hasn't done much for 10 years. The dividend pays 6.5%. but there's no price appreciation. You need a bank with a strong Canadian franchise with some US exposure. TD ticks these boxes, not BNS.

TD and BNS are the main ones in client portfolios. Both are more on the value side. Looking to the next 3-5 years, both have reasonable earnings growth and potential for multiple expansion.

He bought it for the 6% dividend which BNS will increase. He knows the new CEO very well and is fully confident in him.

It is in a transition stage and is backing away from international markets and focusing more on North America: Canada, the U.S. and Mexico. This could be challenging since other banks are already there. He owns some of the other banks.

Owns shares in portfolio - excellent company with attractive entry point. Stable balance sheet with reliable earnings. Good for long term investors, even if economy enters recession. 

Business improving - business in transition. Does not own shares, but looking closely. Currently is a "show me" story. Better names in the banking sector available for investors. New strategy appears to be good, but time will tell. New CEO making bold changes which is good to see. Returns for emerging markets business lines have not proven to be worthwhile. 

Lots to like in the results. Softness in Latin markets created buying opportunity. New focus on Canada, Mexico, wealth management. Earnings impressively beat in both Canadian and international banking. Oligopolistic nature of Canadian banking has lead to outperformance over US banks over time. Yield is 6.5%.

Not overly excited about the Canadian banks for some time. Trying to base. Short-term potential, but not long term. Resistance around $65, now close to that. Don't buy. See his Past Picks.

Feels the caller's pain. In 2008-09, massive outlier because its business mix was so different than most NA banks. Since then, it just hasn't been rewarded. EM footprint has become a liability. Lot of positives in ongoing changes. Going to get more efficient. Disappointed, but too cheap to toss out. Valuation discount. Reasonable earnings growth. Good buy here.

He underestimated the amount of structural change at the bank, reducing its international exposure to focus on North America. He owns other banks and is winding down his BNS position.