We are into bank reporting season in Canada. It was interesting to read in today’s paper that analysts were having a very tough time interpreting Bank of Montreal’s earnings due to some unusual profit items. The report was described in the Financial Post as lengthy and complex and one analyst said the earnings were un-interpretable.
Those are the very reasons why I stopped looking at any of the large Canadian Banks years ago. I found their reports too lengthy and complex. I have never agreed with the idea that more disclosure is always a good thing. It’s not if it buries the reader in details especially if the overall picture is not well summarized.
I have always favored looking at a bank like Canadian Western Bank because it was not into more complex (and very cyclical) activities of helping large corporations sell bonds and stock.
The news about SNC Lavelin is interesting. It may or may not represent a buying opportunity. Since I am not familiar with the company it is best I just stay away from it.