Canadian Imperial Bank of Commerce (USA) (CM)

They would have the oppurtunity to move in where Bear Stearns played, or to have a portion of such market (assuming they moved while CA dollar still strong).

Dirt cheap stock with plenty of cash. Canadian business that has (if the worst was to happen) a Government to bale it out.

BUT IT WON'T NEED IT!

With 24,402M in the Gross Profit (great growth over the last 2 years) it IS the player in its industry (83% rule maker). Fool ratio is 0.1 (n.b. the lower the better, zero being an ideal totally undervalued stock).

Need more convincing? How about Net Margin 65%, and Gross Margin Growth 16%.

Last call on this stock saw a drop of 75c or there abouts. There is no 'REAL' reason for this fall, even given the financial market whoas. I'm buying this stock and plenty on Monday!

- 01/27/2008

Going long to $100-$110

Up up and away! This stock keeps plowing upwards with great dividend payout. Hell of a better return than the .25% they offer on their bank accounts!

Ah yes, the good old Canadian Imperial Bank of Commerce (CM). I've been waiting for an opportunity to buy this business!

The share price fell in mid-December, 2007 when the bank disclosed it was exposed to a potential loss of $1.3 billion (after taxes) as a result of the US subprime mortgage crisis. Everybody in the Great White North was mad at the bank because Canadian banks were not supposed to have any exposure to the nasty US subprime mortgage crises. Oh well, that gives us a chance to buy a great bank at a great price.

Let's put this minor setback into perspective. CM has net earnings of about $2 billion, so even if they have to write off the $1.3 billion, they will still be in strong financial shape. Also, remember back in 2006 when CM settled with Enron shareholders to the tune of $2.4 billion. The bank went on from that unfortunate incident and the share price was hardly affected. Onwards and upwards I always say!

Now for the good news. ValueLine estimates CM's book value will grow at an average rate of 11.5% over the next 5 years. If we buy at a price per share of $68 (2 times book value) that means our invested capital should grow at about 5.7% per year. In addition, with a dividend of $3.11 in 2007 , you get a yield of 4.6% on your shares. So if I buy and hold these shares (and ignor the erratic Mr. Market for the next 5 years) I should get a return of about 10% on my investment, provided the P/B ratio remains at about 2.0. If things go really well for CM over the next 5 years and the P/B value increases to 2.5 (entirely possible based on CM's historic P/B ratio); then I could be looking at a return of 20% per year.

Finally, if the $US dollar continues to fall against the Canadian dollar, you will do even better.

So I'm betting CM will put this subprime mortage business behind it and move on to bigger and better things. Even if the Price/Book does not rise to its historic range of around 2.5 or 3.0 over the next 5 years, I will be happy to hold my shares and watch as my investment grows by about 10 percent per year.

supercycle

The bank has limited subprime write-downs. Solidly positioned and depending on changes to Canadian Law, could take off through acquisitions or by being acquired.

canadian bank, price target above $70 sounds like a deal to me

CIBC has by far the worst exposure of the Canadian banks in the subprime mess due to generally bad management, especially compared with the other Canadian banks.

However, the current price is crazy market driven jitters, compared with their financials and status. There is no doubt this bank will recover its price, maybe not to the $>100 highs in the next year, but maybe in the next 2-5 years.

ALSO: Look out for Bank of Montreal (BMO) ... they've recently revealed their 'real' exposure and are dipping ... similar story.

Terrible management

banking

In the short-term, fair pricing still requires a 20% stock price increase. Within 3-5 years, we'll be back nearing $100/stock though.

Canadian Imperial Bank of Commerce (NYSE:CM)

I'm sold from previous pitches, I like CIBC because it operates in two segments, Retail Markets and World Markets..

I also like that they provide various financial products and services to corporate, government, and institutional clients in North America..

For more information visit: www.cibc.com

this stock has taken it's beating with subprime mortgages, did it's write downs - now is time to buy, it is on it's way back up

Not the best managed bank but always a takeover target when the rules are finally relaxed.

Canadian Banks are about as good as it gets in long term stocks.

Canada is paying down its national debt and decreasing taxes. That is good for Canadian dollar, and going to pull investors into Canada. More business for banks in Canada.

I've owned this stock since 1996 ... Have not been disappointed ... I wish I owned more shares ... Canadian Banks are a monopoly ..... a licence to print money ...

think it will pull back for a better entry, but pick now to get it rated and be able to track it