Bank of Montreal (NYSE:BMO) is about to release quarterly results. Follow this Bear Case Scenario.
Additional acquisitions will probably distract management from the primary focus of running a very large bank.
American analysts constantly point to a Canadian Housing Bubble and BMO large exposure to mortgages and real estate. This may discourage investors from buying the stock. Certainly as interest rates go up many mortgage’s will be under water and unaffordable.
As growth opportunities outside of Canada beckon the question becomes can BMO compete outside of Canada’s highly regulated environment. BMO has a lot to prove with this question. So far no compelling evidence to suggest they will do well outside of Canada.
George Gutowski writes from a caveat emptor perspective.