Well at least if you have to eat your words, it'll be delicious!Mike Schimek wrote:Bought more ravioli today, didn't have to cost average or anything.
Waiting for the inevitable price jump. I'm counting on a 10-15% annual appreciation rate.
Royal Bank (Symbol-RY)
- Peculiar_Investor
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The print edition of today's Globe and Mail, page B12 has a neat graphic showing the changes in sizes of various banks worldwide. Unfortunately I haven't been able to find the graphic on-line. The article can be found at As global banks crash and burn, Canada's sink to 'astonishing' valuescampbell wrote:Interesting...on MarketCall last night, Bruce Campbell said that "In the last 24 months RY has become 7th largest bank in the world, used to be 50th two years ago". They're all slipping and sliding down, RY apparently sliding slower than some.
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Recall that the pretext for the attempted bank mergers a decade ago was to allow Canadian banks to have enough financial heft to compete globally. It seems Paul Martin turned out (yet again) to be right in Nix[on]ing RY's grand pretensions, even if he did it for different reasonsIn the last 24 months RY has become 7th largest bank in the world, used to be 50th two years ago.
(Yes, I know it was Cleghorn, not Nixon, but that wouldn't sound as good.)
Sedulously eschew obfuscatory hyperverbosity and prolixity.
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Dripping at a Discount
Not a dividend hike but a benefit to those who DRIP Royal Bank.
At this time, the bank has decided to issue shares from treasury at a three per cent discount from the average market price until such time as the bank elects otherwise. Most recently the common shares purchased under the plan have been issued from treasury with no discount to the average market price. These changes will be effective starting with the dividend, payable on May 22, 2009 to common and preferred shareholders of record on April 23, 2009.
Shareholders who currently participate in the plan and who will continue to do so will automatically have the discount applied to the reinvestment of their dividends on the May 22, 2009 payment date.
At this time, the bank has decided to issue shares from treasury at a three per cent discount from the average market price until such time as the bank elects otherwise. Most recently the common shares purchased under the plan have been issued from treasury with no discount to the average market price. These changes will be effective starting with the dividend, payable on May 22, 2009 to common and preferred shareholders of record on April 23, 2009.
Shareholders who currently participate in the plan and who will continue to do so will automatically have the discount applied to the reinvestment of their dividends on the May 22, 2009 payment date.
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Seems to me they are trying to encourage more current shareholders to drip their dividends. This would reduce the cash flow required to pay dividends.Shakespeare wrote:For RY, it gives them low-cost capital, since they are issuing treasury shares. 3% is less than the underwriters charge. It is, however, dilutive.
This move perhaps indicates that they would have a cash flow problem if they are to maintain current dividends. They may not be alone.
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Did you notice the big jump in bank shares yesterday? Many pundits feel that was a direct result of this analyst's upgrade. If you favour analysts' opinions, the advice has changed to accumulate on weakness from sell into strength.NOVICE99 wrote:Sitting over $43 today. Should I sell? Seems like analyst estimates not too optimistic?
What it comes down to is your opinion on the prospects of banks and the economy in general. If you are really bearish, feel that the banks' future prospects are not particularly strong and that we haven't yet seen the worst of the impact of the credit crisis, then considering the size of the move off of the bottom (if it is the bottom), it is probably a good idea to take some money off of the table. Conversely, if you feel that the prospects for the banks are no worse than what is being priced in and quite possibly better, then you are being paid pretty well to wait and see how this all unfolds. That's not to suggest that the banks won't sell-off quite a bit going forward depending on the mood of the markets; either way, it's a risk. No one can tell you whether you should be buying or selling. That's something that you have to decide for yourself.
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
Thomas Babington Macaulay in 1830
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Well that's good then. I had hoped to provide a balanced perspective. Considering we reached different conclusions would seem to confirm that I was successful.Nemo2 wrote:We listened to Scott, (again), used his thoughts as a catalyst to act on our own musings, and sold our small RY holding @ $43.76, (paid $26.29 for them back in February).
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
Thomas Babington Macaulay in 1830
In hindsight, (since they're up about another 26¢ since we sold them), we should've offered them for more, but we'd earlier contemplated 'banking' the profit and your comments spurred us to action.scomac wrote:Well that's good then. I had hoped to provide a balanced perspective. Considering we reached different conclusions would seem to confirm that I was successful.Nemo2 wrote:We listened to Scott, (again), used his thoughts as a catalyst to act on our own musings, and sold our small RY holding @ $43.76, (paid $26.29 for them back in February).
Now.......(as with TRP which we just repurchased for less than we sold), if there's a hiccup, we'll just buy the RY back.
Exit, pursued by a bear.
William Shakespeare, Stage direction in "The Winter's Tale"
William Shakespeare, Stage direction in "The Winter's Tale"
Re: Royal Bank (Symbol-RY)
RY seems to have taken a bigger beating over the past 2 months than either BMO or BNS. Ideas why?
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Re: Royal Bank (Symbol-RY)
They missed street expectations and they were priced for perfection.DUKE wrote:RY seems to have taken a bigger beating over the past 2 months than either BMO or BNS. Ideas why?
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
Thomas Babington Macaulay in 1830
- scomac
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Re: Royal Bank (Symbol-RY)
Any bets on the size of the drop on the open this morning? I'll place the over/under at -5% and wager over!
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
Thomas Babington Macaulay in 1830
Re: Royal Bank (Symbol-RY)
down a buck in pre market
"And the days that I keep my gratitude higher than my expectations, well, I have really good days" RW Hubbard
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Re: Royal Bank (Symbol-RY)
Hmmm...not nearly as bad as I thought. I guess the sell-off on Tuesday looked after part of it. So much for crystal ball gazing...scomac wrote:Any bets on the size of the drop on the open this morning? I'll place the over/under at -5% and wager over!
"On what principle is it, that when we see nothing but improvement behind us, we are to expect nothing but deterioration before us?"
Thomas Babington Macaulay in 1830
Thomas Babington Macaulay in 1830
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Re: Royal Bank (Symbol-RY)
Well, even though banks remain my largest sector at 10.6% and RY is my second largest holding after BNS, I'm pleased that the extra diversification I've worked on over the past year has rendered the portfolio less susceptible to problems with financials. Very little portfolio change overall at this little blip.
Sic transit gloria mundi. Tuesday is usually worse. - Robert A. Heinlein, Starman Jones
Re: Royal Bank (Symbol-RY)
RY is @ $52.09 so nearly at the bottom (52-low is $48.85), and 3.56% dividend; Is that a good entry point (buy low sell high) or it is better to stay away? Feeback is appreciated!
Re: Royal Bank (Symbol-RY)
RY got down to $22.79 in Jan 2009. That's what I call a "low". A dividend yield of 3.58% for a bank is more like what I call a "high".
I think earnings of all the banks are vulnerable going forward, I think that's pretty clear given our massive consumer debt. Reduced lending at best and defaults at worst.
I think earnings of all the banks are vulnerable going forward, I think that's pretty clear given our massive consumer debt. Reduced lending at best and defaults at worst.