The Bank of Nova Scotia provides various personal, commercial, corporate, and investment banking services in Canada and internationally. It offers financial advice, solutions, and day-to-day banking products, including debit cards, checking accounts, credit cards, investments, mortgages, loans, and related insurance products to individuals and small businesses; and commercial banking solutions comprising lending, deposit, cash management, and trade finance solutions to medium and large businesses comprising automotive dealers and their customers through a network of approximately 1,000 branches, 3,900 automated banking machines (ABMs), and commercial relationship managers. The company also provides a range of financial products, solutions, and advice to retail and commercial customers in Latin America, the Caribbean, Central America, and Asia primarily through a network of approximately 2,000 branches and offices, 4,600 ABMs, in-store banking kiosks, and specialized sales forces. In addition, it offers wealth management services through 100 offices, including asset management and advisory services for retail and institutional investors. Further, the company provides solutions to corporate, government, and institutional clients, which comprise corporate lending; transaction banking, including trade finance and cash management; investment banking, including corporate finance, and mergers and acquisitions; fixed income and equity underwriting, sales, trading, and research; prime finance comprising prime brokerage and stock lending; foreign exchange sales and trading; energy and agricultural commodities trading and hedging; precious and base metals sales, trading, financing, and physical services; and collateral management. It also offers its products through mobile, Internet, and telephone banking. The Bank of Nova Scotia was founded in 1832 and is headquartered in Halifax, Canada.
Why include international stocks? We are in a global community and international exposure provides a hedge against American volatility. This bank has been around since 1832. When interest rates go up in the US these stocks will benefit.
Well here are the Better Investing stats on this one. It is all yesses in our criteria.
1. It is a 12 Billion large capitalization company with 8.5% sales growth over 5 years.
2. It had pre-tax profit of 39% and is 10% above the industry average or 29%.
3. It earned 17% on stockholder's equity and surpassed its industry rate of 8%.
4. It earned 5% earnings per share a little less than sales.
5. It pays a dividend but within the acceptable parameters.
6. It is 9.5 to 1 which is an excellent upside downside ratio.
CONCERNS
1. 5% growth is low.
2. It may be a slow mover.
3. Change in NAFTA may hurt Canadian economy.
4. There may be better Canadian banks like The Bank of Canada.
We will invest in this company today in our educational portfolio.
We bought 100 shares of BNS @ $54.01 or $5,408 including $7 commission.
So where are we today on 100 shares of each?
BNS paid $5,408 value $5,401= -7.00
TSCO paid $6,667 value $7,375.00 = + 708.00
KMX paid $5,444 value $5,632= + 188.00
LCI paid $3,238 value $2,165 = - 1,073.00
JLL paid $9,699 value $10,048= + 349.00
So we have gains of $165 since September or .52% gain. We will watch and learn.
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