September 3, 2015

On Thursday, the S&P 500 was up 0.1% and Toronto was up 0.4%.

Oil is at $46.55.

Melcor was up 4.6%.

Canadian Western Bank fell 2.5% despite reporting earnings that were about as good as could be hoped for given the low oil price. As of the close someone had sold at $23.28 but someone else had bought at that price. History will show, I strongly suspect, that the buyer got the better deal. Book value is about $22 and the company expects to continue to be profitable. The fact is that the market periodically prices stocks too high and at other times too low. Buffett teaches that we should use the market to our advantage. If you conclude that a stock is undervalued and you own it, rather than fret about that consider buying more at that price if you can. I added a little to my Canadian Western Bank position today. I suspect that stock will do better than the market tomorrow as analysts get a better chance to digest its earnings release.