Roccy"I read that article about different banks taking turns leading the way in returns....."
Pattern sure indicates this. Coincidence?
"and as far as I'm concerned that is BS...CIBC is well positioned to again have the best return for shareholders of the Big 6 for 2,3 or a gazillion consecutive years..."
Gazillion years lol. Yeah, you sure sound like you know what you are talking about. What if Osama slams a plane into their main head office? Not only that but the markets are always changing hard to make a prediction on what will happen a gazzillion years from now. Remember Eaton's once had 90% of all retail sales in Canada.
Why??...1.because CIBC is heavily focused on the capital markets and will reap rewards from the turnaround in the economy which is now underway.
As are other banks. All banks rely on capital markets. One thing though CIBC may be a little to heavily involved there. And as seen in the past this results into instability and will make this into the usual laggard when compared with its peers.
2.Cibc has done a good job on managing problem loans and taking decisive action not like TD that have defrred the problems.....
LOL. CIBC is one of the most disorganized of the banks. Just check the legal databases and compare the hits you get when you punch in each of the banks. Last I checked CIBC leads.
3.the potential to spin off the card division now that they have deal with AMEX is huge...the capital they could unlock by spinning this out is simply incredible..I think it would have more appreciation on the share price than a merger...
Your logic is flawed. I'll tell you why. You are forgetting that by cuddling up to AMEX, they are making VISA angry. A smart banker would rather that VISA than AMEX. This has been tried before by another bank in the US I forget which one. Guess what happened. They offered two credit cards but VISA gave the best deals and promotions to the other loyal banks. So in the end CIBC will end up offering a second rate VISA program that will drive many customers to other banks. Do you realize how angry CIBC is for not being able to have the GM VISA card? They had to implement their own program with Ford which they discontinued because of sheer mismanagement and being stupid as to charge a 40 dollar a year fee for the card while GM is free.
4.the same theory holds true for the Amicus investment...this is another diamond in the rough that will some day be another Godsend like the global crossing investment...
LOL. Yeah look at what happened to the insurance business. Insurance now going up and they want to sell their division. hahaha mismanagement. Royal is no better.
I would sure think twice before I liquidated Commerce in favour of another Canadian bank...JMHO but I think CIBC can give its' shareholder the best return of all Canadian Banks in 2002..John Hunkin will see to that......Roccy
You said that last time. I think you will be wrong again. Canadian banks are given so many luxuries and breaks but still can't manage their way to significant success as they should be.