Canadian Imperial Bank of Commerce (CM-T)

Taking less on credit provisions than other banks. Positive: credit situation better than others. Negative: taking more risk and, if wrong, stock would be penalized. Canada-centric. Exposed to residential mortgages and commercial real estate in Canada; two iffy sectors, but doing better than expected. Good earnings and good asset management. 

Don't sell. Trading more cheaply than RY. RY commands a premium price for a premium asset.

It was undervalued, forgotten. Management has done a great job. Shares remain cheap as it pays a 4% dividend. Still likes it and would buy it now.

Taking some profit in the past 2 days as a short-term call coming into earnings. Bank valuations are at high end of traditional range. Concerned about earnings growth going forward. Canadian economy has issues. 

Make sure it stays above $86. A range of $5 is not going to break the bank ;)  But $86 is where you might want to start trimming and looking at some of the underperforming banks such as TD. He can't imagine TD will stay in its current situation forever. This strategy will also add to your diversification. But be cautious selling, because it's on a nice upswing.

This type of stock is not going to drop from $91 to $50 on a single announcement, it's a lot more predictable than that.

If you're in a bull market, you want to own the strongest stocks you can find. He prefers "good, getting better", some kind of positive change that could add to the valuation, and where other people agree with him. He owns RY, CM, and NA; firing on all cylinders.

A leader in the group, stick with it.

It's been at a discount from all its peers but that is eroding due to them beating earnings. His preferred Canadian bank.

Hesitant on Canadian banking space in general. Mortgage reset date of 2025 hasn't happened yet, with its impact on consumer. Bulk of the bad news hasn't been taken into consideration yet. 

Market bias toward domestic-centric banks right now, so they're doing well. If she had to pick a Canadian-centred bank, she'd pick this one.

He'd pick BMO. All Canadian banks are in solid financial position for the most part, attractive yields, stable earnings.

Acting quite nicely If you want to redeploy funds, take some from a good situation and put them toward a better one. Uptrend since January, though down over 2 years. Sell 1/2 or 1/3 and redeploy. He loves DFY, or look at FFH or GS, or try oil & gas.

Keep the rest, and he encourages using a DRIP. 

The lid around $63 was broken, is being tested, and should move higher. Not a bad-looking chart. You're probably in it for the dividend. Not a disaster to own.

Very domestic, 80% of revenue from Canada. Could have slower growth opportunities than peers, given how constrained Canadian consumer is right now by debt. US operations only 10% current revenues, working to grow that. Earnings are more volatile, difficult to forecast, but now moving into wealth management to smooth out earnings. Doing well. Attractive multiple of 10x. Yield is 5.7%, safe.

Broke trendline. At resistance. If breaks $64-65, it'll head to the next resistance level around $79. Could see trouble in short term, but downtrend in general has been broken. Not a bad-looking chart, unlike the one for BNS.

Long-term, great. Beautiful dividend. Trades cheaper than peers at 8.3x 2024. Beat on balance sheet. Operating leverage was 6.1, top of peers. Just doesn't see growth for next couple of years. But not much downside, get paid to wait. Will eventually turn around. No problems owning here.

No, though it's cheap vs. the other banks. In this market, having a good dividend yield of 5.6% is worth a lot. If interest rates fall, the banks will get squeezed in their net interest margin. There are concerns over outstanding loans. But overall, the banks look attractive and CIBC is especially cheap. He likes Royal too.