Laurentian Bank of Canada T.LB

Not Interesting to the Big 5

[DeanEdmonton]

So ten years of attempting to turn this around still hasn't worked. Even the new CEO couldn't get it fixed. Between management and the board it is clear they are tired of beating a dead horse.

Most assets are in Quebec, and overall size is small in relation to the amount of work needed on the regualtory side to get the purchase approved. 90% of the branches would be redundant, as are the staff. The existing IT infrastructure would need to be turned off, the online cpacity is rudimentary and not integratable and all legacy accounts and loans would need to be converted to the new owners system. To layoff and close that many locations would draw a ton of negative press and a lot of pressure from politicians.

Far too much work for what you get. On top of which, book value is quite a bit lower than claimed given the integration and wind up costs. Buying the assets and deposits would have a far lower value than an operating entitiy. If I still had any shares in this Bank I would have sold them yesterday shortly after the open.

[RayDonovan78]

Hey Dean, I actually think a Canadian bank will buy this underperforming Turd and feel it will be in the low to mid $50's. I think its too risky to buy a smaller American bank right now.

[rad10]

  80 bucks a share is ridiculous, but the other perspective is way off too. several posters don't like this bank - I get it - but at under 30 bucks it was a ridiculous discount to BV. The QC exposure actually makes it more desirable to BNS.  I sold half with the initial pop.  Holding the rest to see where it settles.  High 40s is my guesstimate.

[DeanEdmonton]

Ray, since I know you are still holding some shares in this Bank I hope you turn out to be right and it sells for a good buck, but I will be GREATLY suprised if any of the large Canadian Banks takes on this headache.

[RayDonovan78]

LB's only hope is for a Canadian Bank or Credit union to buy it out. I dont think any American bank or investment firms are interested as there is too much bank regulation in Canada (good thing) Americans don't like regulation as we have seen with their multiple bank failures over the years

[DeanEdmonton]

This is what I wrote 2 weeks ago. I stick by these thoughts. If LB actually finds a buyer I do not believe it will be anywhere near current book value. Given their current Capital Ratio, stock buyback is not in the cards.

[dogatcat]

I think Stephen Takascy has a more informed opinion than yours.  He is right in the mix of the finance community in Montreal and knows this bank and the players involved.  He believes this bank has a book value of $60/share which is what most investement houses are in agreement.    Your opinions are simply out in left field.    You watch and see how much interest

[DeanEdmonton]

My posts from Jun 15th and July 31st 2023. I did guys like Dogcat the favour ofd not copying in their many denigrading responses, along with all their bullet proof rational for loading up on this great buy out opportunity. Like I said over the last 3 months, in the fullness of time we shall see whos analysis is correct. Apparently theirs were not even close, despite the thoughts and insider