National Bank of Canada (NA.TO)

Well run, and has been doing well. Has a nice yield.

Canadian banks have had good growth over the last few months, relative to the TSX and the S&P 500. He feels that you probably have more room in the US banks as they are trading at multiples that are about the same, but have much lower dividend payout ratios.

The valuation discount to the rest of the group should start to narrow. They are diversifying more and getting into more wealth management. He added to it recently. It has a decent dividend yield. TD is his top bank.

More often than not, banks are a very good long-term hold type of investment. The stock is moving up and it looks good. Just came out with earnings after the closing bell. Boosted the dividend.

Chart is not showing an inverse head and shoulders pattern. A head and shoulders pattern has to reverse a trend and there is no trend here to reverse. If anything, it is a pullback and a breakout on a pull back if we make a new high. Thinks the banks are at pretty much all time highs and he doesn’t love the banks here. Instead, go into a BMO Covered Call Cdn Banks ETF (ZWB-T).

National Bank (NA-T) or CIBC (CM-T)? This bank is more regional and in Québec, but they have a more capital market portion of their business. He’d rather have this exposure than the pure retail at the moment.

Preferred series 28. 3.8% coupon. This is the only bank reset out there. Prefers insurance companies over banks. This is a reset that has held up and is coming up for reset in November 2017. Has a higher back end of 243 basis points so you have some protection there as we come up to reset. Pays a decent coupon of 3.8.

(A Top Pick May 15/13. Up 28.27%.) Had a 2-for-1 stock split. This has always suffered from the “Québec discount”. It always traded at a lower price earnings multiple than the other banks. He always felt that if you could buy the stock at a cheaper price and get a higher dividend, you probably should. Earnings have been very good, very strong consistently. Still has room to grow.

A good bank. He has 4 others. Domestic retail, primarily in Quebec. More volatile, but a little higher earnings.

(Market Call Minute.) He wants to buy this when it has had a substantial discount to the other 5 and this hasn’t been the case for a while. It is getting closer because it has underperformed.

A very interesting company, in that it always seems to surpass analysts’ expectations. He is assuming that earnings this year will be up 6%-7% and thinks you will make 11%-12% overall returns over the next 3-5 years.

Does not tend to rank well in his process. This one has an interesting capital markets business and there is expansion room out west.

This is a bank that is fairly attractive. One of the most profitable of the banks. Because of the Québec situation, he feels the stock has been a little bit weak. This is promising and he likes it.

Technicals are not actually looking that good for this bank. Chart shows the stock is in a downward trend. It does have a possible interesting base building pattern, which is mildly encouraging. His concern about this bank is its performance relative to the other banks which is not good. Its trend is down and it is trading below its 20 day moving average. He would prefer some of the other banks that are in an upward trend and showing positive seasonality.

Focused in Québec which has been good in the downturn, but not so good lately because the Québec economy is somewhat lacking the rest of the country. Has done very well in managing costs and has been selectively outside of Québec. Relatively cheap compared to Royal (RY-T) and Toronto Dominion (TD-T) so he sees nothing wrong with this bank. They pay a good dividend. If you’re not looking for super returns, this is a good one to own.