Bank of Nova Scotia (BNS.TO)

Canadian banks are facing potential pressure from elevated credit losses. BNS had some issues with funding costs with net interest margins not as good as its peers but this is a temporary issue. The dividend is over 7%

Very cheap. 1.4-1.6x book value. Trading around 10x earnings. Great business. Tough time recently, partly due to what's happened with US banks. Higher rates increased costs, loan losses went up. Will be substantially higher 1-2 years from now. Yield is 6%.

Going through a lot of change with new management. He's not as keen on its international component. Yield is good. If you're heart is set, wait for a better entry point. History tells us that holding Canadian banks has been a good investment.

CIBC has outperformed BNS year to date. Which stock is less bad (negative)? Do you want to hold any banks? He prefers insurance though he owns TD. Every banks has been down for a while. That said, these two banks have gone sideways since November. He prefers BMO, Royal or insurance.

Shares impacted by softness in South and Central American markets, a buying opportunity. A reversion to the mean story, hoping for $95, which would be a 30% increase. Impressive yield of 6.5%. He's still buying.

A volatile bank. The good news is that it's trying to consolidate. Bad news is it's not making higher highs and lows.

Not in his top 3 Canadian banks, because their operations in Latin America never earned proper returns. Also, they had to go outside the company to replace the CEO last year, and he wasn't even in banks. This is a risk and could lead to a revolving door of execs. This remains a show-me story. Historically, BNS has lagged its peers, returning shareholder returns at 3% annually over the past 5 years vs. peers of 5-14%.

Not best financial institution in Canada.
Worst performer amongst top 5 Canadian banks the past 5 years.
$67 share price, a good buying opportunity.
$80 share price would be target for the long term.

Yields 6.4%, among the highest at Canadian banks. Clearly, there are problems. You're not paying a lot for this, and TD and Royal could drop further in an economic downturn. He's unsure if the CEO will stay long term or is a place-holder. Historically, buying the weakest Canadian bank has been a good strategy. In this sector, he's looking at BNS and CIBC, but isn't rushing into this space, because rising interest rates will hurt consumers (liquidity and the ability to pay loans). That said, it won't hurt to buy a partial position now.

Broadest international exposure.
Under performed the past 2-3 years.
Internal management issues root of problems.
New CEO - former CEO of Finning International will be interesting to see.
Lots of upside in the name if company can turn around.

Bit more volatile than the rest of the group. Quite good dividend yield of 6.5%, raised it 3% last quarter, doesn't see it being cut. Larger international segment, which can create volatility, especially in earnings. Big change in leadership. Worried about its losing senior management. Not sure of strategic direction. Reasonable valuation, below peers.

Very favourable on all Canadian banks for the long term. Question marks on this one. Very high dividend. New CEO brings a wait and see. More diversified internationally, very volatile markets. If you have the stomach for the volatility, won't go wrong for the long haul.

BNS has been a perennial underperformer, he sold. Not tempted to buy the Canadian banks right now.

TD gave pretty decent targets of high single-digit growth over the medium term. Market doesn't believe them, stock remains under pressure. Worries about Canadian housing, economy, higher interest rates. A lot of the damage is already in the share price.

He owns NA. He looks for the best companies that have the best management and add value over 3-5 years, and doesn't worry about day to day stock prices.

It has a 6.4% yield. None of the big Canadian banks have cut their dividends since the 1940's so its dividend should hold up or increase. There are probably better places to invest but it would still be a good investment for the next 10 years.

Current stock price good value pick.
New CEO will be good for the business (new set of eyes).
Revised plan of business units (will remove unprofitable business lines).
6.5% dividend yield very attractive for investors.