Tough tape has weighed on cwb shares, but eps growth profile still scores well for 2018-19

Canadian Market Summary

April 3, 2018

The combination of lackluster Q1/18 earnings and the downside volatility in market conditions over the past two months has resulted in CWB shares giving back a sizable 21% from its YTD high close on Jan 22nd. Of course, the pullback follows what had been a very strong run for CWB in 2H/17, as the earnings power of the company rebounded from the aftershocks of the energy downturn and has returned to the double-digit pace of EPS growth that was consistently seen in the 2010-14 period.

From a valuation perspective CWB shares are now trading at 9.5x our 2019E, a 9% discount to the sector avg. of 10.5x, and we note that the P/E differential is a wider 16% on a capital-adjusted basis. We expect to see an improved performance from the key net interest income components of CWB in Q2/18, and are of the view the recent market dislocation has provided a good entry point into the stock, particularly as we remain constructive on the EPS growth outlook of the bank in 2018E (+18%) and 2019E (+8%).

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Powering your portfolio with solar, wind and water

The Ritcey Report

March 29, 2018

As the world faces the inevitable elimination of sources of non-renewable energy, increasing numbers of investors are looking for opportunities in such sectors as solar, wind and water.

Each of these investment categories presents special challenges and the purpose of this blog is to introduce you to a few of the complexities and opportunities these kinds of investments present.

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