Monday’s action saw the S&P 500 down 1.7% and Toronto down 0.6%.
Canadian Western Bank had a notable decline of 2.7% to $29.91. Book value per share is $25.77 (end of Q3 and will almost certainly be higher when it reports Q4 in early December). Return on book value has been running at about 12% It has not had a loss in even a single quarter in over 25 years. But the market is probably worried about bad debt given the low oil prices. Canadian Western Bank has basically no direct exposure to oil and gas producers but it certainly has exposure to companies that depend on the energy patch for their revenue. CWB has had a great history of avoiding much in the way of bad loans. It will probably continue that way but of course there is always a risk.
Toll Brothers was up 2.2%.
- “Sentiment among home builders dropped 8 points in November to 60 in the National Association of Home Builders/Wells Fargo Housing Market Index.
- The reading was the lowest reading since August of 2016, but anything above 50 is still considered positive.”
Amazon was down 5.1% to $1512.
CRH Medical was down 3.8%.
Visa Inc. was down 3.9%.
Melcor was down 3.9% giving back Friday’s gain.
AutoCanada was up 5.0%.
After the close, Canadian Tire announced a share offering for the Canadian Tire REIT whereby Canadian Tire Corporation will sell $200 million in shares and reduce its ownership of the CT REIT to 76.3% a reduction of 7.4 percentage points and the REIT will sell an additional $65 million. As I write this the offer is shown as still being open on TD Direct. This may mean it is not selling out very fast. I put in an order for a few shares.