Canadian Banks

Discussion in 'Stocks' started by Bigmak, Feb 22, 2008.

  1. Bigmak


    Given the mess in the financial sector, would anyone say that NOW is a good time to take a buy and hold position in a canadian bank.

    In specific I'm looking at CIBC (CM), whose stock has been nearly halved. Seems to have stabilized and is left with a lot of room to grow and recoup losses. Not to mention a little extra dividend income along the way.

    Any opinions?
  2. forfet about banks,buy gold/silver
  3. Cibc is the worst canadian bank. Look at RBC, Scotia or TD. But why invest in banks really, are you a sovereign fund?
  4. This is why 95% of traders fail.

    Who cares if it's a Canadian bank. If you're investing for the long term - diversify. Don't just pick one stock you think will go up.
  5. Chagi


    Why not invest in an ETF, such as T.XFN, if you want to invest in Canadian banks right now?
  6. axehawk


    RY is the best of breed, but has more sluggish price action.

    I've owned TD for over 4 years @ $42 in my long term account.

    When the TSE and the Canadian banks rally, TD moves hard. Nice yield of 3.3%.

    I tried to sell it @ $75.92 and missed the exit intraday by 8 cents. If it pulls back to the $50's, I'll probably add to the position.
  7. Chagi


    I'm personally considering taking a position in T.HFD (double beta inverse Canadian financial sector).

    A bit tricky to time this well, particularly with a large down day Feb 29th, but the overall Canadian bank sector is not looking very good right now, and I don't see this substantially changing for at least 6-12 months. Royal Bank just paused their typically bi-annual dividend increases, I could see other banks potentially doing the same. BMO is struggling with their recent write-offs. Original poster already mentioned CIBC. ABCP plan is apparently now delayed until mid-April.

    In short, these companies will all be excellent long-term investments at some point, but I don't really feel that now is the time.
  8. last summer i liked a combination of long TD and short cibc.

    td focuses more on retail opperations while cibc typically takes on more risky activities.

    imo a long short strategy might still be the best if you want to play canadian banks. the write downs are far from over.
  9. axehawk


    CIBC has the most exposure to the US subprime mess.