Does BMO Bank of Montreal (BMO) represent a good investment?

In Canada, despite the worldwide recession that been hitting quite hard since 2008, our banks had performed well. But while looking a bit more closely to the big scheme, can we say that BMO Bank of Montreal (BMO) represent a good investment?

BMO Bank of Montreal is the only Canadian bank that registered a negative EPS for the past 5 years.

EPS Growth (5 years):
Bank of Montreal (BMO): -4.59%
The Royal Bank of Canada (RBC): +0.32%
The Bank of Nova Scotia (BNS): +1.46%
Toronto Dominion Bank (TD): +1.13%
National Bank of Canada +3.30%
Canadian Western Bank (CWB): +16.73%
Laurentian Bank of Canada (LB): +19.29%
Canadian Imperial Bank of Commerce (CM): +169.51%

In November 2010, BMO Bank of Montreal (BMO) was the only Canadian bank to suspend its DRIP. Before November 2010, BMO Bank of Montreal (BMO) was offering a 2% discount on dividend reinvestment plan, commonly known as DRIP. But in November 2010, BMO Bank of Montreal (BMO) announced the suspension of the 2% discount. Investors are used to a discount of 2 to 3% under DRIP when it come to Canadian banks. When it come to Canadian banks, investors are also used to very good financial results. But none of this exist at BMO Bank of Montreal (BMO).

To the question "Does BMO Bank of Montreal (BMO) represent a good investment?", we can certainly answer by no. BMO Bank of Montreal does not represent a good investment. They might be the worst bank, with the worst financial result for the past 5 years.

But that's not all. BMO Bank of Montreal (BMO) own a wealth management division, BMO Nesbitt Burns. BMO Nesbitt Burns is like BMO Bank of Montreal (BMO): BMO Nesbitt Burns is poorly manage.

One example among other: in February 2010, a lawsuit has been filed against BMO Bank of Montreal (BMO) regarding BMO Nesbitt Burns. Employees of BMO Nesbitt Burns had declared owed unpaid overtime. Those employees were working for BMO Nesbitt Burns.

BMO Nesbitt Burns didn't paid overtime for the period of 2002-2010. Also, according to the claim, it's been reported that employees of BMO Nesbitt Burns expected to work up to 80 hours per week! In this case, the BMO Nesbitt Burns employees are being represented by the law offices of Juroviesky LLP. The case is still ongoing. Are you really going to invest in a bank that is facing a class-action lawsuits related to employee overtime compensation?

Does it make any sense to you?

No, of course, not.

This is pretty hilarious, especially knowing that BMO Bank of Montreal gaga sentence is: "Making money make sense". Yeah, make money, but treat your employees correctly, at least, BMO Bank of Montreal (BMO)....

And it's seemed like for the past 5 years, BMO Bank of Montreal (BMO) hasn't make that much money (remember the EPS Growth for 5 years of -4.59% for BMO Bank of Montreal (BMO).

But that's not all. By treating their employees incorrectly, BMO Bank of Montreal (BMO) had created itself a bad karma...

In May 2010, it's been reported that BMO Bank of Montreal (BMO) had been involved in the biggest mortgage fraud in Canadian history. A Montreal man (who else other than a Quebecker could had been linked to such outrage?) of the name of Robert Manuel Moniz had been arrested by the RCMP had been named responsible for the mortgage fraud exceeding $5 million.

BMO Bank of Montreal (BMO) has a bad reputation as a bank. When investing, just avoid completely BMO Bank of Montreal (BMO).

Hit and run: my investment selling of 2010 in review

Back in 2009, Shirley Won had reported the extraordinary result of the Creststreet Alternative Energy Fund. Despite the recession that was hitting worldwide, the Creststreet Alternative Energy Fund, under Steve Martin management, had reported gains of 94%.

Following my search and after reading about the Creststreet Alternative Energy Fund and his young manager (in 2009, Steve Martin was only 28 years old!), I decided to invest in the Creststreet Alternative Energy Fund. I initially invested 1 000$ in the Creststreet Alternative Energy Fund. I was in heaven. In my mind, the Creststreet Alternative Energy Fund was going to be the investment that was going to double the value of my initial investment. I never had any doubt on Steve Martin skills, even while knowing so little about the majestic.

Steve Martin had joined the Creststreet Asset Management Ltd. in 2005. But on February 2010, Shirley Won announced Steve Martin departure of Creststreet Asset Management Ltd. In result, Steve Martin was leaving behind the management of Creststreet Alternative Energy Fund. Oh noooooo!

I took time to study my options. After what, I decided to sell the units I was holding of the Creststreet Alternative Energy Fund. I sell my 29.229 units for 1 110.69$, making a cutty profit of somewhere of 100$. Selling my units of the Creststreet Alternative Energy Fund was a good decision to take. Following Steve Martin departure, the value of the Creststreet Alternative Energy Fund take a plunge. The Creststreet Alternative Energy Fund later catch up, but without Steve Martin, my interest wasn't there anymore.

2010 selling(s) in a flashback...

Basically, the Creststreet Alternative Energy Fund was the only investment that I sell in 2010.