Canadian Western Bank updated March 10, 2017

Our report on Canadian Western Bank is updated with a rating of (lower) Buy at $30.58. On its face, the chance to buy a well managed bank for only a 30% premium to book value is attractive. This bank is extremely simple compared to the large Canadian banks. Despite the recession in Alberta, their loan losses have not been that bad. I was tempted to rate it higher and I do think it will likely turn out to be a good investment at this price. But it still experiencing weakness and is not expecting much growth this year. So overall, a rating of (lower) Buy seems correct. I personally have a large weighting in it at 9% of my portfolio – and that was after selling some of the shares that I bought at significantly lower prices in 2016. I feel comfortable continuing to hold this company. I also bought shares at higher prices after it started to decline.