Bancolombia S.A. - 01/26/24

Chart of the Day: (01/26/24)

Bancolombia S.A.

(CIB, NYSE)

Open Position: 1.2%

ACBP $32.60

Stop: TBD

• Coming into the new year, we seeded the Growth Fund with some new positions as market health continued to improve. Most of those positions are working out very well so we have to decide which ones to add to. But here is one we are still waiting for, a Columbian bank with a 10% dividend, which has outperformed the Canadian sector over the last year. 

CIB VS. Canadian Bank Sector: - 1 Year

• CIB is a Columbia based bank with a loan portfolio that extends across Colombia, Panama, Guatemala, and El Salvador, providing crucial geographical and revenue diversification.

• Despite encountering macroeconomic challenges throughout the year, Bancolombia appears to be trading at highly attractive valuation multiples, presenting a potential opportunity for investors. The bank's price-to-book value stands at 0.83x. 

• Diversifying the Growth Fund between cheap Value stocks and Growth stocks, CIB falls into the Value category.

• In January, CIB broke out of a two-year base with positive technical attributes. We bought a starter position. 

• Subsequently the stock pulled back to the breakout, and to the 20 Day Moving Average. 

• The pullback was controlled and today’s action in a weak domestic market was very encouraging action. Next week should determine if we can add to CIB and make it a core position in the Fund. 

CIB: Two Year Daily:

• Our Chart of the Day is intended to be a standalone technical chart. 

• We use them to highlight open positions, stocks on our watch list, or indicators that we believe are important, or just interesting at the time. 

• It is not a directional market call.