Exiting Canadian Western
Canadian Western Bank (CWB.TO) Canadian Western Bank (CWB) is an Alberta based bank with approximately 41 branches, 8 trust locations, 2 insurance offices, a commercial equipment leasing center and 2 wealth management locations. [PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'CWB.TO'" symbolprices="30" div_align="right"]
Last December we added CWB at $32.80 based on its low valuation and strong track record. Since then, profits have suffered as the oil economy has withered. We are exiting on the basis that the next quarter will be the second declining quarter in the trailing 12 months EPS.
Purple Chips range is Low: $0 and High $28
EXIT CDN WESTERN BANK AT $25.90 (CWB-T)FULL POSITION
TOTAL RETURN (including dividends): -18.4%,
PURPLE CHIPS TARGET: $28 POSITION SIZE: FULL (5.0%) P/E: 9.7X DIV: 0.88 (3.4%) MKT CAP: $2.0B Debt: $1.2B RETURN ON CAPITAL: N/A EARNINGS YIELD: 9.7% 5 YR EPS Growth rate*:6.1% P/E/G Ratio: 1.7X Current EPS: $2.65 2016 EST.: $2.72 2017 EST.: $2.94
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
