Bank of Nova Scotia BNS

BNS Trades at a Discount For a Very Good Reason

[DeanEdmonton]

I am not a fan of CEOs with no Banking background, and this one isn't changing my mind any. That said, the board is never going to let him reduce the dividend unless compelled to by regulators, and there is no reason for the regualtors to do that. For a great many years, BNS has lagged the total returns of most of the big 5, and is WAY behind RBC and TD. Quality of leadership and their operating results are what drives this. The whole, buy the undervalued, reversion to mean, and all that other stuff only works if the reason for the undervaluation is a temproary issue, and not a decades long systemic problem. Just look at Manulife and Laurentian Bank for other great examples of systemic mismanagement.

Dividends are great but I am not about to trade capital growth, let alone capital depreciation, for a 7% dividend. I hold large postions in RBC and TD, smaller in National Bank, and NONE in BNS, CIBC, BMO or Laurentian.

For longterm holds I always buy the best run one or two companis in each sector, and that pays off far better than betting on turnarounds.

[FiddyFiddyShot]

This post has been removed in accordance with Community Policy

[YupnDump]

only in Quebec..Quebec ca Faire seulement

[DeanEdmonton]

Fidy - you can't really be that poorly informed. You have to be playing stupid because all you have to do is compare LB to the other Canadian Banks.The only reason Laurentian Bank jumped back to $40 is they have put themselves up for sale and people are betting on them selling closer to book value than the $30 it was trading at before the announcement. Personally, I doubt they will find a

[DeanEdmonton]

It would appear the majority of Analysts are starting to share my view of BNS, with the majority reducing their targets and rating the stock under-perform. The whole revert to mean investment theory seems to be getting tossed out. RBC andTD are the premier run Banks and where I want my money. Even National, that I hold a small position in, did not fare well this quarter and anyone who thought they