Canadian Western Bank fell 3.5% to $28.00 today after announcing good but not-quite-as-good-as-expected earnings. I will consider adding to my position at this price.
Toll Brothers was out with good earnings but the stock price fell 1.8%. Keep in mind it has a very high P/E and its earnings need to rise a lot to justify the price. (In other words the stock has for a long time already been pricing in a lot more earnings).
There was another report from the U.S. showing that existing house prices have risen since last year. House prices are too low in the U.S. and in my opinion there are few safer bets than that house prices in the U.S. will continue to rise over the next several years, recession or no.
The news that CP rail intends to chop almost a quarter of its workforce is shocking and interesting. It goes to show that when management really wants to, big changes can be made. I think we can certainly conclude that Hunter Harrison and company are VERY serious about raising profits here. I don’t think I would want to be a long-time employee there because evidently the culture change there is radical. I don’t know anything about the valuation of the stock but I certainly would not bet against the stock.