Bank of Montreal reports Q4 profit of $560M

[Sir Bandelot]

Bank of Montreal reports Q4 profit of $560M

"$560-million profit in the quarter ended Oct. 31 was worth $1.06 per share, up from $452 million or 87 cents per share in the year-ago period.

BMO said it ended the quarter and financial year with a solid Tier 1 capital ratio of 9.77 per cent, and its annualized return on equity of 14 per cent reflected the benefits of its diversified businesses.

Full-year net income of $1.98 billion or $3.76 per share was down from the previous year's profit of $2.13 billion, $4.11 per share.'

Anyone not see the irony in this latest news artical?

[Mr.Canada]

This is great news andmore proof that Mr. Harper was right to not panic during the election. Thanks for pointing that out.

Edited November 27, 2008 by Charles Anthony
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[M.Dancer]

No. Almost everyone with half a brain knew their profits would be down. Of course those who ran around like chickens without heads squaking that the Mortage transfers were bailouts would find it ironic...but that it only because they started with a false premise to begin with....as this earnings report clearly shows.

Edited November 27, 2008 by Charles Anthony
deleted re-copied Opening Post

[Alta4ever]

Finnally some solid reporting in a storm of emotional fear driven MSM crap.

Watch the masses flock for BMO stock.

Edited November 27, 2008 by Charles Anthony
deleted re-copied Opening Post

[Jerry J. Fortin]

I don't think buying bank stock is a good idea at the moment , but go for if that is what you want. Those stock will likely see a correction in the next 9-12 months. Canada is about that far behind the US in our economic trends.

[M.Dancer]

I don't think buying bank stock is a good idea at the moment , but go for if that is what you want. Those stock will likely see a correction in the next 9-12 months. Canada is about that far behind the US in our economic trends.

Unless of course you are buying to hold for awhile...then it might not be a bad choice.

[Alta4ever]

I don't think buying bank stock is a good idea at the moment , but go for if that is what you want. Those stock will likely see a correction in the next 9-12 months. Canada is about that far behind the US in our economic trends.

Yes but most people react to market noise, this looks good so they will buy, even though the opportunity to make money on has long since past.

[Oleg Bach]

Hope they are not taking their best quarterly profit and averaging it out then ratcheting up a make believe profit? If I were a bank I would release these types of figures also...it would be good buisness and a neccesity at this time to lie to enforce confidence. After all money is a religion. And fiatism is wealth by decree - so I decree that I have a billion bucks - It's your job to believe me or the whole system collapses.

[Wilber]

Yes but most people react to market noise, this looks good so they will buy, even though the opportunity to make money on has long since past.

Depends on what you expect when it comes to making money. Right now BMO stock is yielding 8.9%, BNS 7.5%, TD 7.1% and RBC 5.5%. A one year GIC is paying 3.6%. The stocks have more risk but pay substantially more interest on the initial investment if the stock price remains flat and they also offer the possibility of a capital gain if the value goes up. If it goes down, that dividend will still be there if it is a solid company but you may have to wait a while for the price to come back to what you paid for it. That's why they yield so much more than GIC's. Little has changed except that people shopping for stocks should be looking for solid companies that pay good dividends, rather than looking primarily for capital gains as they tended to do in the past.

Good stocks are cheaper than they have been for years. The only question is, will they get even cheaper?

[Wilber]

Hope they are not taking their best quarterly profit and averaging it out then ratcheting up a make believe profit? If I were a bank I would release these types of figures also...it would be good buisness and a neccesity at this time to lie to enforce confidence. After all money is a religion. And fiatism is wealth by decree - so I decree that I have a billion bucks - It's your job to believe me or the whole system collapses.

Methinks that is illegal and one could go to jail for it.

[Oleg Bach]

Or will they and all stocks become worthless? That is a possibility, but it could happen..there could be a total and devestating collapse internationally and you will need the proverbial wheel barrel of cash to get the milk and bread. In the alternative the Canadian banks are still the best - because our bankers are still the toughest and most honourable on the planet - It's that British Scottish thing..honour. I say go for it.

[Alta4ever]

Depends on what you expect when it comes to making money. Right now BMO stock is yielding 8.9%, BNS 7.5%, TD 7.1% and RBC 5.5%. A one year GIC is paying 3.6%. The stocks have more risk but pay substantially more interest on the initial investment if the stock price remains flat and they also offer the possibility of a capital gain if the value goes up. If it goes down, that dividend will still be there if it is a solid company but you may have to wait a while for the price to come back to what you paid for it. That's why they yield so much more than GIC's. Little has changed except that people shopping for stocks should be looking for solid companies that pay good dividends, rather than looking primarily for capital gains as they tended to do in the past.

Good stocks are cheaper than they have been for years. The only question is, will they get even cheaper?

Yes but what I am saying is that people flock like sheep to good news, in the market, but usually by the small investor starts buying the opportunity is gone.

[Argus]

Unless of course you are buying to hold for awhile...then it might not be a bad choice.

The reports I've seen generally agree that there is going to be little upside in banking until at least 2010 and probably not until 2011. Why park money in a stock that's going nowhere for two years?

[White Doors]

Yes but what I am saying is that people flock like sheep to good news, in the market, but usually by the small investor starts buying the opportunity is gone.

Not this small investor

[M.Dancer]

The reports I've seen generally agree that there is going to be little upside in banking until at least 2010 and probably not until 2011. Why park money in a stock that's going nowhere for two years?

Because of the buy low sell high rule....the stock may not begoing anywhere....but it won't be going down.

[Wilber]

Yes but what I am saying is that people flock like sheep to good news, in the market, but usually by the small investor starts buying the opportunity is gone.

What I am saying is that right now the opportunity is in what these stocks yield, not in a capital gain. There is no way to know when that will come. Anyone can see the yield by just looking the stock up on Yahoo. The only question is whether the price is right. Right now, no one knows that answer and that's the big reason yields are so high.

[Wilber]

The reports I've seen generally agree that there is going to be little upside in banking until at least 2010 and probably not until 2011. Why park money in a stock that's going nowhere for two years?

Well you can park it in a stock that is going nowhere but paying a 7% annual dividend or park it in a GIC paying 3.6%. Your choice.

[Argus]

Well you can park it in a stock that is going nowhere but paying a 7% annual dividend or park it in a GIC paying 3.6%. Your choice.

If it goes nowhere..... what if it goes dooooooooooown. Bank stocks have plummeted by about 30% the last couple of months - after a long, steep fall over the previous year. If you bought bank stocks a year ago they're probably worth half that value by now. Who is going to bet they won't be down another 10-20% within the next few months as the recession worsens and debt default rises?

[M.Dancer]

If it goes nowhere..... what if it goes dooooooooooown. Bank stocks have plummeted by about 30% the last couple of months - after a long, steep fall over the previous year. If you bought bank stocks a year ago they're probably worth half that value by now. Who is going to bet they won't be down another 10-20% within the next few months as the recession worsens and debt default rises?

If I had the money I would.

[Wilber]

If it goes nowhere..... what if it goes dooooooooooown. Bank stocks have plummeted by about 30% the last couple of months - after a long, steep fall over the previous year. If you bought bank stocks a year ago they're probably worth half that value by now. Who is going to bet they won't be down another 10-20% within the next few months as the recession worsens and debt default rises?

They may go down some more, I wouldn't be surprised if they did, but if they don't cut their dividend (the last thing a bank or any other financial institution wants to do) the yield will continue to go up as the price goes down, so the quandary is, at what price do you buy, bearing in mind that a solid profit making company is not going to zero. If you believe there is a decent chance that they might, you would be a fool to buy at any price.

[Sir Bandelot]

Here is what I actually said-

Lets not call it a bail out, lets call it a nice christmas present!

[M.Dancer]

Here is what I actually said-

And it sounds even more moronic and clueless the second time.

[Sir Bandelot]

And it sounds even more moronic and clueless the second time.

Us big people want to talk about stuff now, so you go play elsewhere little jonny.