Canadian Imperial Bank of Commerce (CM.TO)

Reaches a low about the end of September and then moves higher by end of year. Has an upward trend. Is strong compared to the TSX. But it is trading below its 20 day moving average. Buy it around $96 where it has technical support. US banks have different seasonality than Canadian banks because of timing of when Q4 results come out (Feb vs. Nov).

(Market Call Minute) It is the most domestic of the banks and he is down on domestic banking.

Switch from Toronto Dominion? This is an okay trade. The 5 Canadian banks are all interchangeable and you can own them at any given point in time. When the new management comes into this bank, there are some real opportunities, because it has lagged quite a bit.

Doesn’t know when they will split. The new CEO will probably shake things up a bit. Likes the stock, but it has had a run. He does not think the split will mean too much.

It is quite likely to split soon. Likes it. It has done very well. He would not buy it aggressively at these levels today. He would prefer RY-T and BNS-T in terms of which one would give the best overall return in the next year.

Stock vs. Stock. CM-T vs. NA-T. You are buying the Canadian consumer as well as their bad history. They are always the bank that has messed up over the last 15 years. It has outperformed NA-T over the last year, however.

(Market Call Minute.) Canadian banks put up great earnings. Most companies beat on their wealth management businesses.

Has done well. Their quarterly report surprised on the upside. This one has the highest dividend in the banks, because of the slower growth rate. They are primarily domestic retail in Canada.

Is it more desirable to buy a stock directly before or after a stock split? It really doesn’t matter. If you buy it before the split, chances are you are probably going to pay a smaller commission because you are buying fewer shares. As far as he is concerned, he would be buying a business, and it would be valued the same as it was before a stock split.

(A Top Pick Sept 4/13. Up 33.46%.) Hasn’t reduced his holdings yet, but is certainly looking at it. When he bought it, it was the bank with the strongest capital position and the highest ROE, selling at a significant discount to the others. It is no longer such a bargain as it is trading at 2.5X. Yield is still fairly strong. Not as compelling a story as it once was. 3.8% dividend yield.

Likes Canadian banks longer-term. Yields are probably going to continue to rise. They have a P/E ratio below that of the TSX. This bank is in the process of a turnaround. If you are willing to take a bit more risk, he would go with this. (See Top Picks.)

Technicals are all okay. Banks have a history of splitting stock when it gets above $100. We have to wait for results next week.

Banks have been really good. Valuations are fair. This is not her favourite bank, but switching to another bank is not worth it.

One of the slower growing banks but with a higher dividend. He likes to buy it on dips but has not owned it for almost a year now. It is the one that will run into any issue that is out there. They have repositioned to be much safer recently. All of the Canadian bank CEOs are retiring this year. They want to ring the bell and get out while things are really good. He doesn’t know if the Canadian banks are going to go higher right now. Consider US banks for diversification.

Going to have a management change soon, so good things could happen. There has been some slippage over the years, but they have a great format. They are diversified and have a good brokerage operation. Have wealth management. They could do well.