Q: With the news of a strategic review at Laurentian Bank would you be a seller on this jump in share price? I just bought a position month ago.
5i Research Answer:
That is a good trade. At only 9X earnings (even after the pop) LB could still go for a higher price. There are very few bank assets for sale in Canada so it has scarcity value. BNS and TD might be very motivated buyers. We might take a little quick profit off the table but we think some can still be held to see what happens.