Giving back to the community is important to Saikali Portfolio Management, and is something we make sure to do throughout the year. Sometimes this means making a financial donation to a cause we care about, and other times it’s about donating our time and support to a charitable event. This week, we’re supporting our community by attending a spectacular annual fundraiser: Dancing with the Docs at the Hilton Lac-Leamy in Gatineau.
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%).
A great business owner knows that it takes more than a desirable product or service to succeed. Whether your team is large or small, employees are critical to the performance of your company and the execution of your brand. Workplace culture plays a role, but there are greater elements such as the individual physical and mental health of your staff. When these things are in line, employees (and businesses) can thrive.
Many companies have decided to be proactive about employee wellness. Some provide gym memberships or healthy snacks in the break room, while another may host a seminar on mental health in the workplace. These are great ways to support employee wellness and encourage staff to take care of themselves. However, there is one important element that employers frequently miss: the financial well-being of their staff.