EQB - significantly oversold? Hi all,
Due to the recent weakness with EQB, I've been doing some due diligence and reading through all the reports/transcripts. This stock IMO looks to be really oversold and it's gotten hammered lately. P/E of around 7 with a 15% annual growth rate is just silly. Yes obviously there's risk with the housing market and a possible recession in the next year, but still.. I think this is a great entry point.
I also think that as the interest rates incresae, more and more Canadians will be going into HSA or GIC's with EQ Bank which provides a low cost way for them to do their lending, leading to higher interest spreads. A lot of millenials I talk to like these HSA and more updated banking system like EQ vs. traditional banks.
Am I missing something or a hidden risk here? My impression is that the only reason that the shares are so low is that there is low liquidity and probably too many Nervous Nellie's out there selling off as opposed to other MIC corporations and banks.