Canadian Banc Corp T.BK

RE EPS

[deisman03]

Not denying that BK isn't a great investment vehicle

What you're missing, is that they are doing a lot of trading, etc to get those returns, many of which are based on the divvies paid out by the banks. 

No investment can pay distributions or divvies if they aren't cash flow positive, without eventually missing a few or as in some cases shutting down. 

I'm not dissing BK one bit. 

I'm saying it's in flux right now and be careful. 

I sold off several times when I didn't like the NAV, EPS etc over the past three years or if the capital gain was double or triple the distribution, only to pick it up a few weeks/months later at a much lower price. 

The NAV/EPS is a good indicator of where to sell and buy back in. 

If possible, always add to your principal or at least preserve it and take profits accordingly. 

Sitting back and watching some good investment vehicles run, such as BK isn't bad strategy, until it isn't. 

The returns can easily be eaten up as happened recently to those that bought in at $15, instead of selling and buying back in a few months later at $12

Banks fail, and when they do BK takes a hit. 

Nothing is absolutely safe. 

You can turbocharge your profits by selling/buying the swings.

[kurtwalter]

Canadian banks are the most solid, though not the most profitable, investment on the TSX. Some tech companies, like CSU, do better. I hold BK mainly for its 15% yield, and take the swings in the principal in stride. I consider it more like a rental property where the real estate value is variable but rental income is steady. I used to make more money as an active investor but I lost a lot of money

[marketsense]

Something to be said for both points of view.  If you are retired and need the income, it isn't such an important apect if the underlying equity value fluctuates up and down as long as your monthtly income is stable.  That is really what you are relying on. I completely understand how one can tolerate the swings in that case.  If you need the cash for whatever reason,  then

[lsrasr]

you make some excellent points.