Canadian Options Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Canadian Options

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: mark hedley who wrote (591)	7/2/1997 6:28:00 PM
From: Dave.S	of 1599

Mark: National Bank is dirt cheap compared to the other 5 large Canadian banks. NA has a P/E of under 10 while the others are trading around 15. There have been some major bank takeovers in the US and Britain in the last week. It seems to be a world wide trend to financial consolidation. NOTE FOR THE OSC AND TSE SURVEILLANCE GROUPS WHO ARE READING THIS. I am not saying it will happen in Canada. I know nothing. I am not recommending purchase of any stock or option. The Canadian banks seem split into 2 groups at the moment. The predatory aggressive banks are: RY (Dominion Securities) - just purchased London Life BNS (Scotia Mcleod) - just purchased National Trust CM (Wood Gundy) - negotiating with Oppenheimer BMO (Nesbitt Burns) - our first US based Canadian bank The less aggressive banks are TD and NA. If (and this purely a guess) the consolidation trend moves to Canada I would suggest that BMO (which hasn't swallowed up anyone recently) could make a play for NA. Also if CM doesn't get Oppenheimer then they could try to merge with TD. This is pure speculation and is only intended to generate some discussion in a thread which has been fairly quiet. Note how well the NTL indicated that a major move was about to happen on the TSE. In a rather dull market on Monday NTL moved up over $2 late in the afternoon. If you remember I had earlier mentioned that NTL is the best leading indicator for the TSE. It is still working. As I said back in April... " You asked about insights about trading the TIPS and TXO's. Don't tell anybody this but NTL is the bell weather stock for the index. I learned this back on October 5, 1991. This date is stuck in my head because I took a terrible beating on the markets that day. Part of my education. The markets were in turmoil that day, the S&P was down almost 20 points, the TXF down almost 7. I was short up to the my limit of my capital. All of a sudden I noticed that NTL was starting to rally (I was short 5,000 shares). I watched in disbelief as it climbed while the rest of the market stunk. Sure enough the rest of the market started to follow and quickly it turned into a rout of the bears. The market actually came all the way back and ended up on the day. I was in shock but learned some valuable lessons that day. Your best education comes on days like that. The many times I have seen rapid turns in the market since then, NTL usually leads the way. It is also the same on general market trends, NTL will turn before the rest of the market does. When NTL hit 104 this year then sold off, this was a sign to me that a correction was on the way." Dave

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next