The report on Canadian Western Bank is updated and rated Weak Buy /Hold at $29.51. I had last rated it Buy on September 4 at $26.46. The price is only 11.5% higher now, but the earnings were down in Q4 and the valuation ratios are less attractive for both reasons. Even with the recent pipeline news and the higher oil prices. it looks like 2017 will be a weak year for the bank. It will still likely do reasonable well long term.
I am over exposed to it as I added shares at lower prices last last year (September 3) and this year January 7, February 24 and June 27. Given the lower rating and given that I am over exposed to it and given that I do have profits on the more recent purchases I intend to trim this position by as much as one third. In retrospect I bought too many CWB shares at prices in the $30’s as it fell from a peak over $40. Until now, I basically considered it to be on my “No Sell” list but given the price recovery this year (up 26% this year) it is timely for me to trim this one.