Bank of Montreal
BMO-T
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About Bank of Montreal (BMO-T)
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Rotation from small-cap banks into large ones? He doesn't see a correlation. BMO itself was the highest flyer in 2018 until it got hit hard in Q4, and now it's back in the middle of the big 5 Canadian banks. He's been gradually selling off BMO (he owns 4 of the 5 banks). BMO is executing well in capital markets and the U.S., but its valuation in neutral.
Rotation from small-cap banks into large ones? He doesn't see a correlation. BMO itself was the highest flyer in 2018 until it got hit hard in Q4, and now it's back in the middle of the big 5 Canadian banks. He's been gradually selling off BMO (he owns 4 of the 5 banks). BMO is executing well in capital markets and the U.S., but its valuation in neutral.
He is comfortable with most of the companies in the financial sector right now. He likes BNS, then Royal, then TD and then BMO and CIBC. You could own any one of them or an ETF that has all of them.
He is comfortable with most of the companies in the financial sector right now. He likes BNS, then Royal, then TD and then BMO and CIBC. You could own any one of them or an ETF that has all of them.
BMO is third on their list. They have done a great job of building their US franchise. They are not trading at an expensive multiple. Room for these to tread water or move higher and collect the dividend. The bigger concern is looking out 2 – 3 years to see where the growth is going to come from.
BMO is third on their list. They have done a great job of building their US franchise. They are not trading at an expensive multiple. Room for these to tread water or move higher and collect the dividend. The bigger concern is looking out 2 – 3 years to see where the growth is going to come from.
He likes banks in general. If you look at banks, 80% of their return since 2010 have come on the second half of the year. There are signs of stability in Canadian housing markets. This one has better growth prospects than its peers and in line valuations. ROE is the highest its been in 4 years. Relatively drama-free. (Analysts’ price target is $111.26)
He likes banks in general. If you look at banks, 80% of their return since 2010 have come on the second half of the year. There are signs of stability in Canadian housing markets. This one has better growth prospects than its peers and in line valuations. ROE is the highest its been in 4 years. Relatively drama-free. (Analysts’ price target is $111.26)
They own Royal Bank (RY-T) and TD (TD-T). They changed the CEO recently. It has done a good job in the last while. The problem with Canadian Banks is the they are not as cheap as the US banks. The good thing is that they continue to grow their dividends and are very well capitalized. Owning here it is fine. Great ROE.
They own Royal Bank (RY-T) and TD (TD-T). They changed the CEO recently. It has done a good job in the last while. The problem with Canadian Banks is the they are not as cheap as the US banks. The good thing is that they continue to grow their dividends and are very well capitalized. Owning here it is fine. Great ROE.
He does not own any Canadian banks. He looks at the level of consumer leverage and the economy. They have been good stocks over the long term but he thinks going forward there are better opportunities to invest money.
He does not own any Canadian banks. He looks at the level of consumer leverage and the economy. They have been good stocks over the long term but he thinks going forward there are better opportunities to invest money.
TD-T vs. BMO-T. Canadian banks have been underperforming the US. There are still some challenges here in Canada, such as less interest rate increases. The changes in real estate laws are still working through the market place. He would underweight Canadian banks.
TD-T vs. BMO-T. Canadian banks have been underperforming the US. There are still some challenges here in Canada, such as less interest rate increases. The changes in real estate laws are still working through the market place. He would underweight Canadian banks.
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