Cashing In at 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="32" div_align="right"]
In March 2013 we bought a full position in CWB at $27.78 at the start of the Canadian banking dip. We followed suit with several other investments in the industry. Given that we are very close to the target and that we are exposed to most of the Canadian Banks, we believe it is prudent to realize some gains in this sector. Based on the above, we recommend taking the profit and waiting for the next opportunity.
Total return on this trade including $.36 in accumulated dividends +18.8% in seven months.
HIGH VALUATION IN CDN WESTERN BANK AT $32.50 (CWB-T, $CAD 32.65) FULL POSITION
MKT CAP: $CDN 2.5B POSITION SIZE: FULL (5.0%) P/E: 14.4X DIV: $0.72 or 2.2% P/E/G: 1.95X Debt: N/A RETURN ON CAPITAL: NA EARNINGS YIELD: 11.4% 5 YR EPS Growth rate: 6.2% CURRENT EPS: $2.26 2014 EST. EPS: $2.65 2015 EST. EPS: $3.03
