Canadian Imperial Bank of Commerce (CM.TO)

We again reiterate this stalwart Canadian institution as a TOP PICK.  Recently reported earnings showed a 28% increase in net income (led by a 55% increase in US based business) along with a profit margin of 27%.  We like that cash reserves are growing, while debt is retired and shares bought back.  It trades at 16x earnings, 2.5x book and supports a 16% ROE.  We recommend trailing up the stop (from $140) to $152, looking for $190 -- upside potential of 16%.  Yield 2.5%

We reiterate CM as a TOP PICK.  If you are banking on the Canadian economy finding its direction thru infrastructure and energy development, the company is well positioned to benefit.  It trades at 15x earnings, 2.4x book and supports a ROE of 16%.  We like that cash reserves are growing, while shares are aggressively bought back and debt is retired.  We continue to recommend a stop at $140, looking to achieve $179 -- upside potential of 16%.  Yield 2.8%

Our PAST TOP PICK with CM is progressing well.  To remain disciplined, we recommend trailing up the stop (from $127) to $140 at this time.

Our PAST TOP PICK with CM has achieved its target at $154.  To remain disciplined, we recommend covering half the position at this time and maintaining the stop at $127.  

Our PAST TOP PICK with CM is stagnating.  To remain disciplined, we recommend trailing up the stop (from $117) to $127 at this time.

CM is one of five Canadian banks who have partnered to create the Defense, Security, and Resilience Bank (DSRB) designed to provide funding to the Government of Canada's commitment to boost military spending.  We think the DSRB will create another avenue for business growth in the years to come.  It trades at 16x earnings, 2.1x book and supports a 14% ROE.  We like that cash reserves are growing, while debt is retired and shares bought back.  Its dividend is backed by a payout ratio at 45% of cash flow.  We recommend setting a stop-loss at $117, looking to achieve $154 -- upside potential of 15%.  Yield 3.0%