Friday, October 31, 2008

Bank of Nova Scotia 2

Since I started talking about banks to invest in, I thought I would look at all banks that are currently being suggested as a good buy. This bank, (TSX-BNS) is a bank that has raised their dividends twice this year. There is also some insider selling on this stock, but it is felt it is below historical averages.

When I last looked at this stock in June 2008, the EPS estimate for the year was $4.26. However, this estimate has been lowered to $3.98. The other negative is that the Return on Equity (ROE) is likely to much lower than the 5 year average. In the analyst ratings on this stock, they seem to be evenly divided into Strong Buys, Buys and Holds.

Not that much has happened to this stock since June. The positives are that the P/E ratio has moved below the 5 year average, the Yield has moved higher than the 5 year average, the Graham Price and the current Price has moved closer (but the Graham Price is still above the current price) and the Accrual Ratio has moved slightly lower (but is still not negative).

This bank is still a well run bank and, on another positive note, the Bank of Nova Scotia is acquiring Sun Life’s stake in CI Financial. Altogether, there seems to be a lot of positives for this stock currently.

This is a bank. It provides personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis. It operates in Canada, USA, Caribbean, and other places around the globe. Its web site is See my spreadsheet at I am reloading my spreadsheet with the July 2008 figures.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets on my web site.

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