Bryden TeichCanadian Western BankCWB.TODON'T BUYOct 28, 2019

Likes this bank because it is run differently than other Canadian banks (more energy clients). Fundamentals of bank look good. Technical aspects of chart look great. Believes stock could hit $40. Will continue to hold. 

Fate of energy sector directly impacts success of company.
High exposure to energy industry through lending.
Does not own shares - too risky.
Large Canadian banks better for defensive investors.

EPS of $0.88 beat estimates of $0.8209 and revenues of $283.51M beat estimates of $276.84M. Net income available to shareholders was $83M, an increase of 19% compared to the prior quarter. Management noted its strong financial results were driven by branch-raised deposit growth, improved sales, and discipline on managing expenses. Its annual loan growth of 6% led net interest income higher by 5%, and overall the market was pleased with these results. Management expects mid single-digit percentage growth in loans and low single-digital percentage growth in branch-raised deposits growth for FY2023. There are some concerns on the economy ahead from management, however, it believes its prudent lending approach and expense management will help to offset some of this weakness. Overall this was a decent quarter for the company.
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Very cheap. Strong balance sheet, decent yield, very nice upside potential. The West is coming back thanks to oil. Banks in general have been under pressure to raise more reserves. Rising interest rates are mixed for the banks. 

It is down and bouncing around within a band range. He is not sure about the details of the company but the dividend is reasonably safe. It may be good for a long term investor but there are others which may be better quality.

Largely a regional bank. Reasonable-sized commercial business outside Western Canada. Prefers the bigger banks, with their diversification by line of business and geography. Applauds its efforts to grow, but banking is increasingly a business where size and scale gives the big players an advantage.

Management pretty astute. Expanding fairly aggressively in Ontario. Lots of opportunities. Yield is over 5%, relatively safe. Good at measuring credit in the small business sector, and delivering personal service to small business clients. Reasonably good buy if you have a longer term focus.

The valuation is now attractive. This is not a bad entry point. A risk is compressed net interest margins. Could be more downside on banks given recession fears.