Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

For One Of The Best Banks, Go North

It does interest me how sell-side analysts and investors will often overestimate the improvements to be had from inferior banks and simultaneously underrate the ability of banks who've established their excellence to keep the good numbers rolling. Such as that may be, it can work to investors' interests when it comes to Canada's 7th-largest bank, Canadian Western (OTCPK:CBWBF) (CWB.TO).

I'm certainly not going to argue that Canadian Western is obviously cheap - the stock trades at over 2x book value and about 30% above its traditional forward P/E. That said, those ratios don't always incorporate the superior record of profitability and returns at CWB, and I believe the shares are as of yet still somewhat undervalued. What's more,...

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