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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I like CIBC because of it's personal mortgage exposure: higher mortgage amounts means more revenue for the bank, also rising rates, a healthy dividend, and great earnings reports. Now that it has more US exposure others seem to like more as well. It has had a good run since I bought at $104. Would now be good time to take these profits or do you see more upside for CIBC?
Read Answer Asked by John on January 09, 2018
Q: The dividend yield for CIBC is significantly higher than the other four big banks in Canada. I recently heard that if there is a real estate downturn that CIBC would be the most negatively affected because it has the greatest exposure to residential mortgages.
My question is why do you think the dividend yield is higher for CIBC?
Read Answer Asked by Ron on October 31, 2017
Q: Hi 5i,for some reason I didn't get a reply for my yesterday's question. I would like your choice of the above, perhaps suggesting better ones. Can you explain why are they trading substantially below their book value. How will future interest rate increase effect their price. Can you suggest a web site for rate rest prefers. Many thank, J.A.P. Burlington
Read Answer Asked by Joseph on September 12, 2017
Q: Hello i5, Please help me to understand why cm.pr.p @$18.26,paying 4.26%div,redeemable @$25.00 with a floating rate feature trading at, in my view, a large discount price? or is it? Please explain how the actual floating is, in terms of %div on this preferred. Also would appreciate receiving a couple more alike rate reset ones at lower than redeem Price. How would the reset preferred be effected by the prime rate change. Many thanks J.A.P. Burlington
Read Answer Asked by Joseph on September 12, 2017
Q: CM reported good results today similar to RY's yesterday--beat expected eps by 0.11,increase domestic banking(by 8%),mortgage volume(12%) & US wealth management(76%) with decline in provision for loan losses,but capital market decline 10%.Please help me to understand why it dropped 2% today after an initial spike of some $1.19.Thanks for u usual great services & views.Is this a good entry point?
Read Answer Asked by Peter on August 25, 2017
Q: 8:53 AM 7/26/2017
Hello Peter
Is there any reason to avoid Bank of Commerce? It has a trailing P/E of 8.96, dividend of 4.52%, is by far the cheapest of all the Canadian Banks and would seem to be a best buy. Are there any problems anticipated with the new US acquisition? Anything I am missing? Is a 6% position in CM ok for income added to existing positions in RY 4%, BNS 3%, and TD 2%?
Thank you......... Paul K
Read Answer Asked by Paul on July 26, 2017
Q: The article you shared about the Canadian banks was an interesting read. I'm curious if you would buy any of the banks today, and if so which one and why? Its interesting to hear your thought process around whether you would go for the higher dividend payer that is more undervalued but limited short term growth, or the more US exposed fair valued, or international fair valued, or other reasons.
Read Answer Asked by Adam on July 06, 2017
Q: Given the increasing speculation that the Bank of Canada will be hiking interest rates come July 12th, which bank or banks in Canada will benefit the best from it? Looking to put some cash into Canadian financials as I am just starting to develop my first portfolio. Thanks for the great service you provide!
Read Answer Asked by Justin on July 05, 2017
Q: I have 100K to invest, with the requirement that it all be in dividend tax credit eligible stocks, income and minimal overall risk are more important than growth in this account. I would like to keep it to no more than 10 names at approx 10K each, so far I have come up with BNS, CM, ENB, TRP,BCE,FTS,NWC, T, ALA,SLF. Do you have any concerns or suggested additions.
Read Answer Asked by Ray on June 26, 2017
Q: Is it time to rethink the long american bank play? My Citi is fine but BAC seems to languish and there is talk of the rest of the year being one and done rate wise.

I also have CM that I am thinking of cashing in.

Which of these has more upside?
Read Answer Asked by Mark on June 12, 2017
Q: My holdings in the banks are pretty well equal. Circumstances have arisen which require me to decide whether I should shift this balance against the most overvalued to the most undervalued, if there is a worthwile difference among them for a long term holder. Would you be inclined to rank them and indicate whether your order represents significant differences?
Read Answer Asked by Carl on June 05, 2017
Q: Hi Peter , wonder if you could tell me why the banks are down from their highs in Mar. while the earnings are good, and what would be the catalyst to get them back to that level. Thanks, Nick
Read Answer Asked by Nick on May 31, 2017
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