http://www.investorsfriend.com/bostonpizzaroyalties/Stocks ended the day on Wednesday with the S&P 500 and Toronto each down 0.6%.
Canadian Western Bank was down another 3.0% to $24.81. The Canadian Western Bank preferred shares Series 5 were down 3.1% to $16.95. The preferred shares are unlikely to ever fail top pay their dividend even if CWB does face heavy loan losses. In that case, CWB would likely issue common equity to shore up the balance sheet which would secure the preferred shares.
The increase in loan losses for CWB points out that banks are always subject to earnings uncertainty for that reason. The equity investment that seems most stable and predictable on our list is probably Boston Pizza Royalties. That is because it is sort of like an income investment. It collects a franchise fee. For any company, revenues are likely to be a lot more stable than net income. The exception would be a company where all expenses vary directly with revenue. Boston Pizza’s net income effectively equals revenues because it is a top line entity. In addition, the revenues at a restaurant chain are less likely to be volatile than the revenues of most companies.