Bank of Montreal

BMO-T

TSE:BMO

95.70
0.00 (0.00%)
The Bank of Montreal, operating as BMO Financial Group and commonly shortened to BMO, is one of the Big Five banks in Canada.
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Analysis and Opinions about BMO-T

Signal
Opinion
Expert
COMMENT
COMMENT
November 24, 2017

Has an ROE slightly below 14%, which is why it would trade at a lower Price to Book multiple of 1.6X. The bank has bought its way into very competitive markets, mainly in the US and things like commercial banking. It would not be the bank he would buy, but doesn’t see any particular risk in owning it. Doesn’t feel you are going to get a lot of performance above the group.

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Bank of Montreal (BMO-T)
November 24, 2017

Has an ROE slightly below 14%, which is why it would trade at a lower Price to Book multiple of 1.6X. The bank has bought its way into very competitive markets, mainly in the US and things like commercial banking. It would not be the bank he would buy, but doesn’t see any particular risk in owning it. Doesn’t feel you are going to get a lot of performance above the group.

WAIT
WAIT
October 30, 2017

With a one year horizon, it is too hard to forecast. Over the long term the new management team has a strong leader with a capital markets background and a cost cutting initiative. It is not attractive today but is long term. The critical question is the success of the Harris Bank integration. BMO has been having trouble with growth but this is a long term opportunity.

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Bank of Montreal (BMO-T)
October 30, 2017

With a one year horizon, it is too hard to forecast. Over the long term the new management team has a strong leader with a capital markets background and a cost cutting initiative. It is not attractive today but is long term. The critical question is the success of the Harris Bank integration. BMO has been having trouble with growth but this is a long term opportunity.

COMMENT
COMMENT
October 27, 2017

Some of the banks, including this one, are at the $100 mark, which is where banks like to do stock splits. He would be positive on this.

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Bank of Montreal (BMO-T)
October 27, 2017

Some of the banks, including this one, are at the $100 mark, which is where banks like to do stock splits. He would be positive on this.

DON'T BUY
DON'T BUY
October 25, 2017

He doesn’t own BMO, he prefers Scotia (BNS-T), Royal (RY-T) and CIBC (CM-T). The one lagging in valuation lately is probably CIBC. Some banks are expanding in the US which is a very competitive market, and it could take several years before you start seeing any significant gains to the bottom line.

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Bank of Montreal (BMO-T)
October 25, 2017

He doesn’t own BMO, he prefers Scotia (BNS-T), Royal (RY-T) and CIBC (CM-T). The one lagging in valuation lately is probably CIBC. Some banks are expanding in the US which is a very competitive market, and it could take several years before you start seeing any significant gains to the bottom line.

COMMENT
COMMENT
October 20, 2017

Chart shows a Bull/Flat formation. The top of the flat is represented by disbelievers, people who don’t want the stock and are taking advantage of rallies and selling their position. The key on this is that it has broken out. The buyers are actually winning. That means it will likely go higher. There is a decent chance that this can reach the recent high and go a little higher. There is a nice little bull/flag formation.

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Bank of Montreal (BMO-T)
October 20, 2017

Chart shows a Bull/Flat formation. The top of the flat is represented by disbelievers, people who don’t want the stock and are taking advantage of rallies and selling their position. The key on this is that it has broken out. The buyers are actually winning. That means it will likely go higher. There is a decent chance that this can reach the recent high and go a little higher. There is a nice little bull/flag formation.

COMMENT
COMMENT
October 4, 2017

Has been Short on this for over 8 years now, through a Pairs trade, being Long on Guardian Capital (GCG-T). When he did this in 2009, Guardian was trading at about a 25% discount just to the value of its BMO shares. Effectively, he was buying BMO $.50 to the dollar. Both stocks have gone up, but Guardian has gone up more and the spread has widened. This is one of the reasons he really likes Pair Trading.

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Bank of Montreal (BMO-T)
October 4, 2017

Has been Short on this for over 8 years now, through a Pairs trade, being Long on Guardian Capital (GCG-T). When he did this in 2009, Guardian was trading at about a 25% discount just to the value of its BMO shares. Effectively, he was buying BMO $.50 to the dollar. Both stocks have gone up, but Guardian has gone up more and the spread has widened. This is one of the reasons he really likes Pair Trading.

BUY
BUY
September 28, 2017

He likes all the banks. However, in Q3 this bank had negative operating leverage, a -2.2%. Their US operations at flat earnings which were kind of disappointing. There is uncertainty on the street as to whether they can maintain their efficiency ratios. The weaker US$ hurts them a little. They have a very favourable Cdn/US business mix. This is one you can buy at around these levels.

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Bank of Montreal (BMO-T)
September 28, 2017

He likes all the banks. However, in Q3 this bank had negative operating leverage, a -2.2%. Their US operations at flat earnings which were kind of disappointing. There is uncertainty on the street as to whether they can maintain their efficiency ratios. The weaker US$ hurts them a little. They have a very favourable Cdn/US business mix. This is one you can buy at around these levels.

COMMENT
COMMENT
September 14, 2017

If you are a long-term investor, you can’t go really too far wrong with Canadian banks. They tend to be these really solid, steady growers. The multiples contract and expand. Banks have some of the best dividend growth history out there. If you are buying for a long-term dividend growth, it is one you just buy and tuck away.

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Bank of Montreal (BMO-T)
September 14, 2017

If you are a long-term investor, you can’t go really too far wrong with Canadian banks. They tend to be these really solid, steady growers. The multiples contract and expand. Banks have some of the best dividend growth history out there. If you are buying for a long-term dividend growth, it is one you just buy and tuck away.

WAIT
WAIT
September 6, 2017

Rising interest rates are positive for banks. Banks in general have been in a near term downtrend. He is looking at the banks, but now is not the time to buy them. The chart on this shows lower highs and lower lows, but at some point, the banks will consolidate. Seasonally, October is generally a good time to buy banks, because they tend to move up into the next earnings season at around Christmas.

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Bank of Montreal (BMO-T)
September 6, 2017

Rising interest rates are positive for banks. Banks in general have been in a near term downtrend. He is looking at the banks, but now is not the time to buy them. The chart on this shows lower highs and lower lows, but at some point, the banks will consolidate. Seasonally, October is generally a good time to buy banks, because they tend to move up into the next earnings season at around Christmas.

HOLD
HOLD
August 28, 2017

Not his favourite. He has trouble dissecting their strategy. It is more US oriented than it used to be. See top picks today. It is a hold because he likes the industry.

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Bank of Montreal (BMO-T)
August 28, 2017

Not his favourite. He has trouble dissecting their strategy. It is more US oriented than it used to be. See top picks today. It is a hold because he likes the industry.

BUY
BUY
August 4, 2017

Which Canadian bank would you buy, excluding Toronto Dominion (TD-T)? To him, Bank of Montréal (BMO-T) looks pretty good. He sees an upside in this. It is trading at a discount to its EVB which is $105.66. His model price is $106.43 which is 12% higher.

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Which Canadian bank would you buy, excluding Toronto Dominion (TD-T)? To him, Bank of Montréal (BMO-T) looks pretty good. He sees an upside in this. It is trading at a discount to its EVB which is $105.66. His model price is $106.43 which is 12% higher.

COMMENT
COMMENT
June 29, 2017

Toronto Dominion (TD-T), Bank of Montréal (BMO-T) or Bank of Nova Scotia (BNS-T)? He likes the financials. In Canada, banks and the insurers have underperformed the rest of the sectors this year. With interest rates starting to move higher, this is good for banks. Of the 3, this is about the cheapest.

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Toronto Dominion (TD-T), Bank of Montréal (BMO-T) or Bank of Nova Scotia (BNS-T)? He likes the financials. In Canada, banks and the insurers have underperformed the rest of the sectors this year. With interest rates starting to move higher, this is good for banks. Of the 3, this is about the cheapest.

COMMENT
COMMENT
June 7, 2017

Canadian banks pretty much go in lockstep with each other, but there are deviations. When you look at their business mixes, they all are quite different businesses. The wildcard for a number of these banks has typically been the capital markets side, which tends to be a lot more volatile than earnings. He would not have any argument with somebody wanting to own this. (See Top Picks.)

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Canadian banks pretty much go in lockstep with each other, but there are deviations. When you look at their business mixes, they all are quite different businesses. The wildcard for a number of these banks has typically been the capital markets side, which tends to be a lot more volatile than earnings. He would not have any argument with somebody wanting to own this. (See Top Picks.)

HOLD
HOLD
May 26, 2017

In the Canadian banking sector, you have to separate the ones which are highly dependent on Canadian revenues, and those who are more dependent on outside revenues. This one is right in the middle, but probably more dependent on outside revenues. Only 60% of its revenues come from within Canada, with the rest coming from the US. Earnings report was not great and the stock got hurt a little. He has seen this before with a lot of the bank stocks, so it is not a name he would give up on at this point. It could even be an entry point at this time.

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In the Canadian banking sector, you have to separate the ones which are highly dependent on Canadian revenues, and those who are more dependent on outside revenues. This one is right in the middle, but probably more dependent on outside revenues. Only 60% of its revenues come from within Canada, with the rest coming from the US. Earnings report was not great and the stock got hurt a little. He has seen this before with a lot of the bank stocks, so it is not a name he would give up on at this point. It could even be an entry point at this time.

TOP PICK
TOP PICK
April 4, 2017

Preferred Series V. A new issue that has just been trading for a few weeks. It does not have a floor feature, because banks are not allowed to do so. Has a 4.5% coupon.

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Preferred Series V. A new issue that has just been trading for a few weeks. It does not have a floor feature, because banks are not allowed to do so. Has a 4.5% coupon.

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