Royal Bank (RY.TO)

He buys Canadian banks and just sits with them without selling.

Has not been buying it recently. They traditionally hold a significant valuation premium to others and it has disappeared to a great extent. They have done very smart things over the last few years. Cleaned up issues in the US and are a large player in capital markets and retail banks. Over 4% yield still and a relatively safe place to be.

Still sees a correction risk in the banks. They keep going higher. It is not his forte to buy in when something is as strong as this is. We should still get a correction. To be there now for dividends: ZWB-T. Get into RY on a pull back.

We are still in a strong time frame for banks. Relative Strength Index would suggest this has a bit more to run.

Possibly sell a little bit here or wait for a pullback to buy more. They still have growth in their business. Their numbers came out today and they were very, very good. Canadian banks manage their risks very well. Thinks they will rise their dividends.

Dividend stocks on Canada including banks are a little over stretched. Good yield, but she would take a few profits and put it in the US banks.

Likes this one but it has had a huge run. If you own, continue to hold and add on any weakness.

He is more focused on the US banks because there is more value there. The RY is bank on their model price. Others have upside to model price. Prefers NA-T

Not his favourite bank. You could probably go into this one now. Has sort of lagged over the last little while and he doesn’t think there will be a significant correction in the banks. They have corrected some of their problems.

Looking to Buy some Puts. What is your outlook for the next 6 months? He doesn’t use much in the way of options. Owns this bank and he likes it. Has had a marvellous run. If you are a trader, this might not be a bad time to take some profits, stand back and see where it is going from here. Likes it long-term.

(A Top Pick April 26/12. Up 12.21%.) Thinks the banks will continue to fly. Low valuations, good dividend growth and buybacks. This one is really in the sweet spot because they are most into wholesale and most to benefit from improved capital markets. That trend will continue. Has above average profitability. Still a Buy on any kind of a pull back.

Has probably been the best performer of the banks in the last 12 months or so. Doing the right thing. Good retail business in Canada. Have really reduced the risk profile on the capital market side. Not trading their own account anymore but are trading for clients which is less risky. At this price, he could see trimming his position a bit to buy one of the other banks. (See Top Picks.)

Pretty neutral on the bank stocks. Has found other things in the market that are better value.

Nothing wrong with this here. Earnings growth is slowing down and valuations are back at the high end of the range again. Doesn’t see that much short-term upside. He’d be more inclined to add something from the US such as Citibank (C-N), J.P. Morgan (JPM-N) or BankAmerica (BA-N). These have way more potential upside.

Sector has come off a bit. If he saw this one get to $60 with a bit of volume, he would be more apt to buy. There will probably be resistance at around $62. Insurance stocks look a little more interesting. This would be more of a trading opportunity than an investment opportunity. Money has probably already been made in the banking sector. Better opportunity in other sectors.