Canadian banks are often described as boring, safe and stable, but some speculators are beginning to apply another adjective: expensive. The country’s five biggest banks trade at some of the highest price-earnings multiples in the global banking industry. According to the Globe and Mail that’s partly because their shares have held up relatively well this year, while their peers worldwide got clobbered on concerns related to Europe’s debt crisis and a possible recession in the U.S.
The valuation gap is prompting some observers to bet that Canadian bank stocks will fall, even as their defenders argue that the financial institutions’ rock-solid retail base and prudent management will help them withstand any slowdown.
However, thus far ,Canada’s banks have largely sidestepped the woes..
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There's more at http://www.theglobeandmail.com/globe-investor/hedge-funds-take-aim-at-canadian-banks/article2200582/
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