April 7, 2016

On Thursday, the S&P 500 fell 1.2% and Toronto was down 0.6%.

Costco was down 3.0%. I have updated the report for Costco and rated it (lower) Sell at $152.03 (lower) Sell means somewhere between a Sell and a Hold.  The story with Costco has not changed. It’s a fantastic company but almost always looks too expensive.

Bank of America was down 3.2% to $12.85. I would likely add to my position in this stock if I had cash in the U.S. portion of my accounts. It will report Q1 earnings very shortly.

Canadian Western Bank was down 2.7% to $23.54. After the close CWB announced that it will acquire a $350 million loan book and business from GE Capital. This business provides loans to finance franchise businesses across Canada. The price paid was not disclosed. This only adds about 1.5% to CWB’s assets and so is probably not a big deal at all. But it is a positive as it provides growth outside of Alberta. I would not want to see CWB have to issue equity to finance this.

Wells Fargo, which we rate (higher) Buy was down 2.4%. It will release Q1 earnings shortly.

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