Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Darren Sissons commented about whether ENB-T, KNEBV-HEL, ATCO.A-ST, SAP-T, MS-N, BAC-N, NTR-T, GSP-X, OTEX-T, SVNLY-OTC, SHOP-T, TBVPF-OTC, LIN-N, ACN-N, STO-ASX, INTC-Q, AVGO-Q, ADI-Q, TXN-Q, AQN-T, AMKBY-OTC, ZIM-N are stocks to buy or sell.
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COMMENT
European banks. Take a hard look at the Ukraine conflict and decide whether it will be localized, so that after the recession, the rest of Europe will get back to business. If so, as the currency falls, could be an opportunity to buy at record low levels and hold as they recover. If you're not looking through that lens, you probably shouldn't be there. He's not adding any more banks right now until he sees the status of non-performing loans after the recession.
COMMENT
Canadian vs. US banks. In Canada, the large banks own a mortgage asset, and they underwrite, administer, and collect on it. So you have a large iceberg underlying the profit cycle of Canadian banks. Quite resilient. For US banks, mortgages originate at the community banks and then move up the channel and can be sold. Income from these is largely transactional. If transactions slow, as in a rising interest rate environment, this would be a revenue headwind, and you'll see a spike in non-performing loans. US banks will trade down, probably more than Canadian ones. But when we bottom out, there will be a significant opportunity. Wouldn't touch a US bank now. Not a huge fan of banks right now, but if he had to choose, he'd buy a Canadian one.
WAIT
For US banks, mortgages originate at the community banks and then move up the channel and can be sold. BAC participates in this. Income from these is largely transactional. If transactions slow, as in a rising interest rate environment, this would be a revenue headwind, and you'll see a spike in non-performing loans. US banks will trade down. But when we bottom out, there will be a significant opportunity. Wouldn't touch a US bank now.
banks
