Post by
DeanEdmonton on Oct 24, 2022 10:12am
$20-$23 Is not A Bad Entry Point
Most of you know I am NOT a CWB fan under current leadership but for those that are, this is probably a decent spot to pick up a partial position. Rising interest rates will hurt commercial loan growth and their net interest margins due to funding so much of their loan book from non-branch deposits but on the fip side the sectors and geographies they lend to are doing very well. Even a recession is unlkely to inrease their loan losses much. They continue to be only marginally effective at building out their retail and wealth management operations. There are negatives but $20-$23 is pretty cheap.
Comment by
zforzebra on Oct 24, 2022 6:08pm
There is probably going to be severe volatility from the rate hike announcement on Weds, which should in theory make the stock go down some more for a better deal, but could also illogically go up a lot.