Q: Good Morning all,
Have had this bank in my TFSA for awhile and was waiting for some movement. However now it is looking desastrous. Do I bite the bullet now or wait for it to settle up? Some are saying the stock has an intrinsic value of close to $50 and therefore should head back toward that value. In your valued opinion, is this stock a hold or a sell?
Thank you.
Have had this bank in my TFSA for awhile and was waiting for some movement. However now it is looking desastrous. Do I bite the bullet now or wait for it to settle up? Some are saying the stock has an intrinsic value of close to $50 and therefore should head back toward that value. In your valued opinion, is this stock a hold or a sell?
Thank you.
5i Research Answer:
The stock was $33 before it put itself up for sale. Value might be $50, but we are very surprised no bank wanted to buy it, considering how few bank assets are available for sale in Canada. We would not expect that anytime soon. But, at $32 we think it is a hold. It may drift a bit lower as short term traders who were looking for a deal exit the stock.