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Royal Bank of Canada (RY)
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Toronto-Dominion Bank (The) (TD)
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Bank of Nova Scotia (The) (BNS)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Q: Dear Peter et al!
I am not good in coming up with limericks! If I were, I would somehow use Peter/Ryan and TD/BNS/BN in a limerick ! If I said you folks sound like a broken record it would be rude. May I say you sing that lovely tune that consists of notes TD/BNS/BN/RY always! Faithfully endorsing a buy on the above mentioned stocks.
But here is my question based on my mild bewilderment! On one hand your faith in BN is linked strongly to Mr. Bruce Flatt's managerial skills. But on the other hand BNS's CEO didn't meet your approval and you were at best very tepid in welcoming him! TD's foray into the M&A domain was a disaster!
Having said that my faith in your suggestions is unshakable! With this in mind, can you rank order these stocks in terms of priority of buying at this stage. How long do you think one has to wait for these stocks to return to decent price range. a year or two or three? Your crystal ball is lot clearer than mine!!
These are going to be held in our TFSAs and plan to buy and forget about them for a while! Keepers and not traders!
Mano
I am not good in coming up with limericks! If I were, I would somehow use Peter/Ryan and TD/BNS/BN in a limerick ! If I said you folks sound like a broken record it would be rude. May I say you sing that lovely tune that consists of notes TD/BNS/BN/RY always! Faithfully endorsing a buy on the above mentioned stocks.
But here is my question based on my mild bewilderment! On one hand your faith in BN is linked strongly to Mr. Bruce Flatt's managerial skills. But on the other hand BNS's CEO didn't meet your approval and you were at best very tepid in welcoming him! TD's foray into the M&A domain was a disaster!
Having said that my faith in your suggestions is unshakable! With this in mind, can you rank order these stocks in terms of priority of buying at this stage. How long do you think one has to wait for these stocks to return to decent price range. a year or two or three? Your crystal ball is lot clearer than mine!!
These are going to be held in our TFSAs and plan to buy and forget about them for a while! Keepers and not traders!
Mano
5i Research Answer:
We would rank: BN, RY, TD, BNS. BN we think will recover faster than the banks. Investors love to hate the banks right now, with recession and other worries. Meanwhile BN can use its giant capital base to make acquisitions in a recession. BN is very cheap by historical standards. The banks are as well, but with higher loan losses reported last week they might stay in the doghouse a while. We think maybe it will take upwards of a year here. Investors have been awaiting a recession for two years now, and it is getting (maybe fully) priced in. But it will take a quarter, or two, or three, for investors to realize that, once again, the world is not ending for Canadian banks.