He has a model price of $2.87, which is a negative 14.5% discount. However, based on the September balance sheet, closed above $7.21 it would be a raving Buy.
7-year bonds are at 8.6%. Even if you are getting this percent and you think you did well, once there is a recovery chances are they will be called. He would rather look at something that gives infinite rates of return which is basically the common stock.
Canadian Banks: He sees nothing that gets him excited. National Bank has upside of 38%, Bank of Montreal is 10%, CIBC is 0.8%, TD is 0.4%, Royal is negative 2% and BNS is negative 3.5%.