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Stockchase Opinions

Michael SmedleyBank of Nova Scotia (Pref.)BNS.PR.O.TOHOLDMay 12, 2008

5.75% preferred shares probably makes sense.
$25.09

Stock price when the opinion was issued

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COMMENT

Owns the five major Canadian banks. Bank of Nova Scotia is looking for a change in strategy with the new CEO. CIBC is one of the cheapest.

BUY
Prefers are somewhat compelling. Because of the selloff, it is trading below its Call. With the recent changes in the tax laws, a 5% yield comparable to an after-tax yield is about 7.5%.