It probably did not escape anyone’s notice that markets got hammered down on Wednesday. Even after a partial recovery from steeper declines, the S&P 500 was down 0.8% and Toronto was down 1.2%
Bank of America reported approximate break-even results after another huge settlement charge related to the financial crisis. Other than that charge the results looked pretty good. This bank is trading at about 80% of book value and 120% of tangible book value. A more normal price to tangible book might be towards 200%.
I grabbed a few more share of this as Well as Wells Fargo today.
Canadian Western Bank fell 3.5% to $36.46. No doubt there are concerns that the lower oil price could cause bad debt. But overall this price may represent a good opportunity to initiate a position in this banks with its long history of growth.
Boston Pizza at $19.71 yields 6.2% which seems attractive even though I would expect very modest growth if any due to the nature of this entity.
My strategy be to continue to buy selected stocks on dips.
It remains to be seen whether markets continue to decline or of instead earnings reports or other economic news causes the market to rise.