Canadians out of stocks To me, BBD looks solid. I like what I am reading from management and the comments from some of the excellent contributors here. Company is doing what they need to do with debt etc. Steady improvements in all areas are continuing. I am genuinely impressed.
My two comments:
- Institutional investment:
So, comparing with DOO (BRP Inc) you see they have held by institutions at 74% and yet still has a P/E ratio of 7.75. So, is it a big deal to get institutional investors on side? I am not convinced of the effects. I presume it helps stabilize the price. But what I really want is a higher stock price.
- Canadians weaker financially:
Seems to me the big problem is the that Canadians are financially weaker. Something like 50% less money is expected to go into RRSPs etc. in the spring. Average Canadian has less money for investing. Everyone out of stocks, expecting a recession. We have to wait for a recovery. Canadian deficit is how many trillion? (That is the first time I have written trillion). What I am hearing is that the net worth of the average Irish and Belgian person is greater than the average Canadian and yet Canada has so many resources that Ireland and Belgium does not have. It’s such a shame.
Enough of this financial illiteracy leadership. The real growth in share price will come when Canada comes out of recession.
All the best.
Snowey