Monday, December 9, 2013

Seeking Alpha: For One Of The Best Banks, Go North

It does interest me how sell-side analysts and investors will often overestimate the improvements to be had from inferior banks and simultaneously underrate the ability of banks who've established their excellence to keep the good numbers rolling. Such as that may be, it can work to investors' interests when it comes to Canada's 7th-largest bank, Canadian Western (OTCPK:CBWBF) (CWB.TO).

I'm certainly not going to argue that Canadian Western is obviously cheap - the stock trades at over 2x book value and about 30% above its traditional forward P/E. That said, those ratios don't always incorporate the superior record of profitability and returns at CWB, and I believe the shares are as of yet still somewhat undervalued. What's more, CWB is a good play both on the ongoing development of energy resources in Western Canada and a higher rate environment. I'd be tempted to wait in the hope of a pullback, but I've gone down that road before to my own detriment.

Please continue here:
For One Of The Best Banks, Go North

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