Banking on Canadian Western
Canadian Western Bank offers a range of personal and commercial banking, trust services, and wealth management services. Its subsidiary, Canadian Direct Insurance Incorporated (CDI) offers personal home and automobile insurance to customers in British Columbia and Alberta. Trust services are offered through Canadian Western Trust Company (CWT) and Valiant Trust Company (Valiant). [PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'CWB.TO'" symbolprices="91" div_align="right"]
CWB is a small bank that services western Canada and has a good history of pumping out stable and predictable earnings. The current valuation is attractive as CWB trades at 12.3X earnings and pays a 2.4% dividend. Their earnings yield is at 17.3%, which is the highest level for all the chartered banks.
LOW VALUATION IN CANADIAN WESTERN BANK AT $CDN 27.75 (CWB.TO, $27.78)
Market capitalization is $CAD 2.1 billion The Purple Chips target is $CAD 32.00 in 12 to 18 months.
