Canadian Imperial Bank of Commerce (CM-T)

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.

CIBC was under the most pressure during the interest rate hikes, but now it's rebounded 26% off the bottom, the strongest bank performer. It will continue to rise. Peers like TD and RY have a big US presence, so if you want that CIBC doesn't offer it. Owns CIBC as a valuation trade. The dividend is safe. Lower rates will certainly help CIBC.

Expecting a decent year from company. Canadian banks difficult to predict, but overall a strong sector. Safe regulations and industry standards. Lower interest rates will be good for business. New management strong and would recommend buying. 

Expecting growth in sector in 2024, however business has headwinds facing it. Not great metrics and costs have been high. Better options for investors in sector and elsewhere in markets. 

Believes Canadian financials will catch up in 2024. Would be a good time to buy small position. Won't be a major capital gain, but is not pessimistic about sector anymore.