Royal Bank (RY.TO)

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.

Likes Canadian banks in general. Great organization and well run. Great dividend. The one risk is that they have moved more aggressively into investment banking globally and so has the potential risk of being volatile in earnings.

Doesn’t recall a bank decreasing a dividend, so it is safe. It is at support right now and he expects a move up. The longer you go back, the less and less the peaks mean. He looks at the last year and the trend is for higher lows. There is a lot of trading range and we are in the middle. Use the 200 day moving average as the stop.

Has been pretty cool on the Canadian banks. Because investors have been searching for yield, they put money into banks which has moved up the valuation. Valuations have remained pretty high. Prefers National Bank (NA-T) which he owns.

Canadian banks are at the top end of the range. There is potentially pressure coming to them. You could take some money off the table. Look to buy it back if we dip toward the summer lows.

Likes banks because they are dividend growers. This one has increased its dividend twice this year. This one is more capital market oriented, which makes more volatility, but it is a higher margin business.

This is probably one of the better bank performers and probably just a little overvalued. Just struck a deal today to buy Ally Financial’s Canadian auto finance and deposit business. They are just generating so much excess cash flow. They have no need for it. Not his favourite bank.

(Top Pick Oct 31/11, Up 24.39%) Thinks their current acquisition will be a good fit. It moves them into the car financing business, which some of them are doing. The premium with which they used to trade compared to other banks has gone away. Still likes it.

Has a fairly high degree of confidence that their business is not going to grow that much. Dividend should be fine. Consumers are retrenching. Home prices are softening. If you are looking for just the dividends it should be fine but if you want something more, look elsewhere.