Bank of Nova Scotia (BNS-T)

Nice 6.5% dividend yield. Traded down due to softness in Central and South American markets, presenting a buying opportunity. Reversion-to-the-mean investment story. Already up 15% from October 2023, not including dividend. If got back to $95, would be a 46% return plus divvie. Buy now for quality, attractive multiple, high yield, and a margin of safety.

It hasn't done much for 10 years. The dividend pays 6.5%. but there's no price appreciation. You need a bank with a strong Canadian franchise with some US exposure. TD ticks these boxes, not BNS.

TD and BNS are the main ones in client portfolios. Both are more on the value side. Looking to the next 3-5 years, both have reasonable earnings growth and potential for multiple expansion.

He bought it for the 6% dividend which BNS will increase. He knows the new CEO very well and is fully confident in him.

It is in a transition stage and is backing away from international markets and focusing more on North America: Canada, the U.S. and Mexico. This could be challenging since other banks are already there. He owns some of the other banks.

Owns shares in portfolio - excellent company with attractive entry point. Stable balance sheet with reliable earnings. Good for long term investors, even if economy enters recession. 

Business improving - business in transition. Does not own shares, but looking closely. Currently is a "show me" story. Better names in the banking sector available for investors. New strategy appears to be good, but time will tell. New CEO making bold changes which is good to see. Returns for emerging markets business lines have not proven to be worthwhile. 

Lots to like in the results. Softness in Latin markets created buying opportunity. New focus on Canada, Mexico, wealth management. Earnings impressively beat in both Canadian and international banking. Oligopolistic nature of Canadian banking has lead to outperformance over US banks over time. Yield is 6.5%.

Not overly excited about the Canadian banks for some time. Trying to base. Short-term potential, but not long term. Resistance around $65, now close to that. Don't buy. See his Past Picks.

Feels the caller's pain. In 2008-09, massive outlier because its business mix was so different than most NA banks. Since then, it just hasn't been rewarded. EM footprint has become a liability. Lot of positives in ongoing changes. Going to get more efficient. Disappointed, but too cheap to toss out. Valuation discount. Reasonable earnings growth. Good buy here.

He underestimated the amount of structural change at the bank, reducing its international exposure to focus on North America. He owns other banks and is winding down his BNS position.

The question was on his preference for the two banks. Both have international operations with BMO focused more in the U.S. and BNS more in Latin America. He prefers BMO. Now is not the time to buy BNS but watch it over the next four quarters,

Hasn't bottomed. First support is $55; if that doesn't hold, then $45. Internal operational issues. Financials have strong seasonality from January-March, but not this year. A ways from finding a bottom. If you need a bank, buy RY.

Good news here is that it's done such a poor job operationally, it's at a discount to peers. Upside in terms of a turnaround story. He owns at a low weighting. Hold, wait and see for the next quarters.

A major holding. The big question is what differences in strategy direction the new leadership will make? Maintain their large exposure to Latin America? They pay a bigger dividend at 6.7% than event CIBC and trades at a bigger discount in price-to-book. Dividend increases are possible.