The New Western Cdn. Bank has an eye on $5B Market Cap.

                    First Quarter Highlights
             The Canadian Western Bank reported it's first quarter results on June7.It would be easy to list all the improvements and gains over Q1 2017.Instead I will simply say that revenues were up 14% and adjusted earnings per common share were up 24%.In fact, all of their financial indicators were up and some up by 24 to 27%,  like shareholder's net income.It is easy to lose sight of the fact that only two years ago CWB had a market capitalization of around $2 billion.Since then it has made a couple of astute acquisitions,
 opened 2 to 3 new branches,started an online banking operation and improved their capital ratios.
          An alternative to the 5 big banks
  With the price of oil in the $40 per barrel range CWB was struggling to survive.And it made a number of adaptations including expanding their business in Ontario.They also had a small equity issue in this period and used the funds well.About 6 months ago it's prospects looked so good that their stock traded at $41 and analysts at Credit Suisse were expecting to stay at this level.It did not;it fell to the $34 to $36 area but it did raise it's dividend.It also continued to pile up several good quarterly reports.Now it's market capitalization is around $3.2 to 3.5 billion.

But it is also showing growth of 24 to 27% in earnings.If the price/earnings ratio stays the same or even falls slightly it's earnings growth should bring it to a  market capitalization of $4 billion by year end.This is a long ways away from CIBC's market capitalization of $50 billion.It also is a long ways away from $2 billion market cap.
             Focusing on it's Strengths
  My last blog on Blogdaleupsome listed 5 points for it to focus on to improve the stock price (just like in the picture above).See post dated March30,2018 for details.Of those points the most important would be to open another branch in Ontario (maybe eastern Ontario) in order to pick up more commercial loans and to put more investment in their online banking unit called Motive Financial.They probably also need another small equity issue even though it will dilute earnings slightly.These points will help to move the stock price gradually to the $38 to $40 level and it's market capitalization to $4 billion.It is true that $5 billion market capitalization is over the horizon but it does have a distant eye on it.                        https://www.vaneck.com/row/ ; http://www.sprott.com/