CM - Taking Profits In Canadian Imperial Bank
2024-05-31 08:00:00 ET
Summary
- Canadian Imperial Bank of Commerce stock has returned about 34.7% in the past six months, outperforming the S&P 500.
- The rising stock price makes CIBC a riskier investment compared to safer alternatives like Treasury Notes.
- Risks include regulatory pressure and an over-indebted Canadian economy, which may impact CIBC's loan growth and mortgage book.
Canadian Imperial Bank of Commerce Overview
It’s been just over six months since I wrote that I was going to buy Canadian Imperial Bank of Commerce ( CM ), hereafter referred to as “CIBC” ahead of their upcoming earnings announcement. The shares have returned about 34.7% against a gain of about 15% for the S&P 500, so I’m pretty pleased with the results. I thought I’d review the name again post the recent earnings announcement in order to see if the elements that attracted me to this investment are still in place. Additionally, a stock trading at $50.60 is, by definition, much more risky than the same stock when it’s trading at $38.60, so I think a review is warranted. It may be a great investment at $38 but a terrible one at $51....
Taking Profits In Canadian Imperial Bank