For Bank Investments, Stick With Big Five

Article Excerpt

We’ve generally stayed out of Canadian bank stocks other than the big five, and we haven’t missed much. However, we have had some successes with non-bank financials like Dundee. DUNDEE CORP. $51 (Toronto symbol DC.A (old symbol DBC.A); Aggressive Growth Portfolio, Finance sector; SI Rating: Average) provides wealth management services and sells mutual funds through 61%-owned Dundee Wealth Management Inc. It has gained from its activities and investments in junior resources. Dundee has launched a new retail banking operation, Dundee Bank of Canada, to provide loans and a variety of banking services and loans. Dundee plans to keep costs down by offering these services through financial planners, instead of physical branches. The stock is reasonably priced at 15.9 times its likely 2006 earnings of $3.20 a share. Dundee is a buy, mainly for aggressive investors. investors…

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