On Monday, the S&P 500 and Toronto both ended the day down 0.1%.
West Fraser Timber was up 2.6% and continues to do very well.
Canadian Western Bank was up 1.6%. After it released earnings on Friday the headlines said it has higher loan losses. That’s true but that was in comparison to a NEGATIVE provision for credit losses in the year ago quarter. CWB’s loan losses this latest quarter were at the low end of its normal range and are lower than the big banks. CWB’s results overall were about as expected. But it did have very low growth as its customers are more focused on paying down debt than taking on new debt. CWB expects only modest growth this year but it’s share price already reflects that. They now have three branches in Metro Toronto and one will soon open in Kitchener. They are laying the groundwork for higher growth ahead but it has been a slow process.
I sold half my Costco position day because it seems very expensive at 47 times forecast earnings per share. In general selling Costco is usually a mistake. I’d love to buy it back at a more reasonable price. It releases earnings later this week and as long as the overall market sentiment stays strong it could certainly keep going higher.