Q: I have a large position in Bns and thinking of selling 50% of it with a nice profit
In a question today regarding TRI and the banks you said the banks may not have a lot of upside left
Regarding Bns specifically, what would you say the upside left in it at current price $88
I would like to deploy the money in another stock for a 3 year hold -suggestions? Thanks
In a question today regarding TRI and the banks you said the banks may not have a lot of upside left
Regarding Bns specifically, what would you say the upside left in it at current price $88
I would like to deploy the money in another stock for a 3 year hold -suggestions? Thanks
5i Research Answer:
Price predictions are inherently difficult and we would not put too much stock in them. The banks have had a good run, and could still do well. However we doubt they will do AS well in the next year as in the past. We might suggest 10% more upside. With the dividend, that would still be a very solid return. If taxes are applicable we would be reluctant to sell BNS as any new position would need to go up that much more just to cover the tax hit. With no taxes, TRI, WSP or BN could be suggested for some 'conservative' growth ideas.