CWB CN

Canadian Western Bank

Finance/Real Estate


Presented:02/12/2018
Price:CA$37.67
Cap:$2.67B
Current Price:CA$56.45
Cap:$4.36B

Presented

Date02/12/2018
PriceCA$37.67
Market Cap$2.67B
Ent Value$4.01B
P/E Ratio15.5x
Book ValueCA$24.82
Div Yield2.55%
Shares O/S88.78M
Ave Daily Vol272,144
Short IntN/A

Current

PriceCA$56.45
Market Cap$4.36B
Canadian Western Bank engages in the provision of business banking services for small and medium-sizes companies. The firm provides general commercial banking; equipment financing and leasing; commercial real estate financing; real estate construction financing; and energy lending. The firm also offers full-service personal banking options, including checking and savings accounts, loans, mortgages, and investment products. The company was founded by Charles R. Allard and Eugene Pechet on November 1, 1987 and is headquartered in Edmonton, Canada.

Publicly traded companies mentioned herein: Canadian Western Bank (CWB CN)

Highlights

The presenter views Canadian Western Bank (CWB) as the lowest quality bank in Canada. He is short at 37 CAD and sees the risk/ reward as skewed to the downside over the next 12 - 18 months. In his opinion, CWB has been somewhat “reckless” with its balance sheet, lending outside of its core market and running with little margin for error, and may have run out of options to maneuver given several headwinds in the market (e.g., B20, higher rates, etc.). Therefore, he expects to either lose ~20%, if the multiple holds and earnings are stable; or make 50% plus if his thesis is correct.

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Idea Discussion

Commentor 1 - 2 weeks ago

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