Laurentian Bank of Canada T.LB

Alternate Symbol(s): LRCDF | LAUCF | T.LB.PR.H

Financial Services Banks - Global

Laurentian Bank of Canada (the Bank) is a Canada-based provider of financial services to its personal, commercial and institutional customers. The Bank operates in Canada and the United States. Its segments include Personal Banking, Commercial Banking and Capital Markets. The Personal Banking segment caters to the financial needs of retail clients. The Commercial Banking segment caters to the financial needs of business clients across Canada and in the United States and provides commercial banking, real estate financing, and equipment and inventory financing. The Capital Markets segment provides a range of services, including research, market analysis and advisory services, corporate underwriting for debt and equity, and administrative services. The Bank's clients can access its offering of financial advice, products and services through a network of branches in Quebec. The Bank offers a digital direct-to-customer platform to all Canadians. The Bank has approximately 57 branches.

TSX:LB - Post by User

Laurentian Bank of Canada

Bullboard Posts

Comment by Mirage57on Jun 08, 2018 11:44am

92 Views

Post# 28146127

RE:Why I am short

Interesting perspective Vincent, how much do you think is the LB going to go down considering where it is now? Aren't the factors you mentioned beaked already in the price?

vincentld wrote: Hi guys,

First post in this bullboard. I decided to initiate a short position on the stock based on the following conclusions :

-Management cant seem to close negotiations with the Union slowing down the transformation plan. No end in sight on that front.
-Decline in the mortgage portfolio due to the new rules B20 rules, higher cost of funds and much stricter control on the underwritting process.
-2/3 of the growth in the commercial book comes from Northpoint : the core book in Quebec is not growing anymore and is slowingly eroding.
-Second miss EPS in a row (if we adjust for 0.11$ from the sale of the Agriculture loans).
-Pending rating downgrad from DBRS and S&P based on their previous negative outlook and the deterioration of the commercial book.

Let me know what you guys think and if you agree/disagree with my assessment.