CIBC is taking an ENRON type hit...
- Thread starter 21pro
- Start date
You are probably right. This bank has nine lives. Sub-prime crap, Enron, O&Y, LDC, Dome Pete, Chrysler, etc. If not for their mistakes, they would be larger than mighty RBC.bogo said:
Well while you all are waiting for the banks to come back, stocks like Apple are hitting new highs almost everyday. Today Apple broke the $200 mark on the nyse.
Thats where the risks are but then those are the stocks that are making money today.
No I don't own any, I thought it was too high when it was $90
Thats where the risks are but then those are the stocks that are making money today.
No I don't own any, I thought it was too high when it was $90
Banks have been around for 150 years and will probably be around for another 150 years. Stocks like Apple come and go. Remember when Nortel was going to $150? I bought some oil stocks when oil was at $10 a barrel and now it is at $90. (Shoot, sounds like I am bragging again. Ok, I also bought Bombardier at $9.)S.C. Joe said:
^ the same could be said for energy stocks (enron) and mining companies (bre-x)
the very fact that they will have banks in 150 years, does not give any logical reasoning to invest in a banking company involved in such a scandal. especially if their core holdings is in over-valued assets (real estate).
if you look up and down your street, how many of your neighbours 'own' their home? OREA figures estimate less than 3% of the homes out there are free from some sort of institutional ownership!
the very fact that they will have banks in 150 years, does not give any logical reasoning to invest in a banking company involved in such a scandal. especially if their core holdings is in over-valued assets (real estate).
if you look up and down your street, how many of your neighbours 'own' their home? OREA figures estimate less than 3% of the homes out there are free from some sort of institutional ownership!
Cibc is not going broke anytime soon.
This is a buying opportunity. If it hits 60, I'm in.
Cause it will bounce back.
This is a buying opportunity. If it hits 60, I'm in.
Cause it will bounce back.
Sure in a long enough time.
Some who brought NASDAQ @ 5000 are still waiting for it to hit 5000 again. Sure it will some day but when ?
Isn't there maybe better stuff to buy instead of betting on NASDAQ hitting 5000 again.
Gold took 25 years to come back, unless you are planing on giving stock to your kids I would wait until the banks start going back up again-not when it hits $60 or $50 or $40 but after it goes up for a while or at least until it stops felling for a few months. It been OK for the last 2 weeks but other big banks are stil going down.
If I was all in cash now--which I am not I be buying 30-90 day CD's right now.
Some who brought NASDAQ @ 5000 are still waiting for it to hit 5000 again. Sure it will some day but when ?
Isn't there maybe better stuff to buy instead of betting on NASDAQ hitting 5000 again.
Gold took 25 years to come back, unless you are planing on giving stock to your kids I would wait until the banks start going back up again-not when it hits $60 or $50 or $40 but after it goes up for a while or at least until it stops felling for a few months. It been OK for the last 2 weeks but other big banks are stil going down.
If I was all in cash now--which I am not
I be buying 30-90 day CD's right now.Are you buying CD's from banks? What if the bank goes insolvent? Are your CD's CDIC insured? Ottawa will never let a major Canadian bank go bankrupt, they will even arrange a bank merger before allowing a bank to fail. If they have to, Ottawa will print the money to bail out a major bank. Better a little inflation than riots in the streets.S.C. Joe said:
...wait till the writeoffs have been reported for the most part, then buy the stronger banks
hey,,anybody remember Corning at $2.00 BWAHAHAHAHA
hey,,anybody remember Corning at $2.00 BWAHAHAHAHA
Buy in anticipation, sell on news. By the time the write-offs have been announced, it will be old news and the stock will have jumped already. Got to be bold and jump in before the write-offs are announced.MajorMattMason said:
You need not to get in right at the bottom to make money, look what Amazon did, right after they posted great earnings, the stock open like around $45 US up from $30-ow-you should have got in at $30, NO--you should have got in at $45 or $50--the stock when as high as $100 a few months later.
Bank stocks all went down again last week, maybe its the bottom maybe they keep falling most of the year, who the heck knows but once they do hit the very bottom, they be going up for a long time. I would not try to guess the bottom on these stocks. Wait until they make a V curve. Thats me.
Some do like buying @ say a given price, 100 shares @$70 and another 100 @ $60 but thats not for everybody and you need to be careful not to buy too much at what YOU think is a good price.
Stocks always go higher than you think and lower than you think they will--at least for me they do.
Bank stocks all went down again last week, maybe its the bottom maybe they keep falling most of the year, who the heck knows but once they do hit the very bottom, they be going up for a long time. I would not try to guess the bottom on these stocks. Wait until they make a V curve. Thats me.
Some do like buying @ say a given price, 100 shares @$70 and another 100 @ $60 but thats not for everybody and you need to be careful not to buy too much at what YOU think is a good price.
Stocks always go higher than you think and lower than you think they will--at least for me they do.
Rockslinger said:
That can be true--but you need to remember to SELL
These stocks have been bouncing on the way down, you could have jumped in when it look like a loan was coming their way...Ex last month Merrill Lynch was around $52 right before they got a big overseas loan a few thought was coming, it did and the stock opened higher and went over $58...but it closed last Friday at $50.29.
S.C. Joe, canadian banks are just not like their US counterparts. They are oligopolists!! US banking is far more risky, returns are therefore more volatile, and only the best banks (like Wells Fargo, my personal favorite) have consistently excellent returns on capital (ROE).
CIBC isn't the best of banks (it's probably among the worst). But it's gotten rid of the part that's been giving it the most trouble in the past few years, it's New York branch, so it has now reverted to earning its ridiculously inflated retail profits without having to mess with the next writedown from underwriting the wrong bond.....however, once it recovers to a valuation of its peers, get rid of it. As bank investments, TD and BNS rule.
CIBC isn't the best of banks (it's probably among the worst). But it's gotten rid of the part that's been giving it the most trouble in the past few years, it's New York branch, so it has now reverted to earning its ridiculously inflated retail profits without having to mess with the next writedown from underwriting the wrong bond.....however, once it recovers to a valuation of its peers, get rid of it. As bank investments, TD and BNS rule.
Cibc
I cannot help but be happy that CIBC is taking such a hit. Could not have happened to a more deserving company!!!!
I cannot help but be happy that CIBC is taking such a hit. Could not have happened to a more deserving company!!!!
This hits the core of my distaste for our Canadian Banks. The Canadian consumer ultimately pays the price for bad decisions and failed ventures. I find that Cdn Banks take almost no risk in helping Canadians (retail or business clients), yet will leap into the international market at a moment's notice. When things go bad with these riskier types of investments, we pay the price thru higher loan rates, or bank fees.Rockslinger said:
Does anyone else realize that Cdn Banks have almost ZERO risk when financing a mortgage on a Cdn Property? If you do not have 20% down, then you are forced to take out an insurance and pay for that insurance!!!! If you default on the purchase the insurance covers the mortgage, or the bank has your 20% downpayment!!!!!
Did any of you guys get the new issue of CIBC shares at $67.05 each?
CIBC and Citibank would be great banks if they mothballed their U.S. operations. How many banks actually made money in the U.S. in the past 10 years with the Enrons and sub-prime mortgages?
CIBC and Citibank would be great banks if they mothballed their U.S. operations. How many banks actually made money in the U.S. in the past 10 years with the Enrons and sub-prime mortgages?
Gentlemen, thank you for the information, this is an excellent thread.
I have a question: With inflation rising is it worth my while to pay off my mortgage?
I put down 35% in 2005 for my present home. I went to numerous banks and financial institution - but I couldn't get out of paying an insurance premium. ING Direct had the most expensive premium but there was no penalty if your payments go beyond the yearly maximum. I got my mortgage from Canada Trust and they've hit me with a penalty for going beyond my maximum. Presently I'm paying $1200.00 a month on the principle. I figure that when I renew in 2010, I'll be holding aces. Am I doing the right thing?
I have a question: With inflation rising is it worth my while to pay off my mortgage?
I put down 35% in 2005 for my present home. I went to numerous banks and financial institution - but I couldn't get out of paying an insurance premium. ING Direct had the most expensive premium but there was no penalty if your payments go beyond the yearly maximum. I got my mortgage from Canada Trust and they've hit me with a penalty for going beyond my maximum. Presently I'm paying $1200.00 a month on the principle. I figure that when I renew in 2010, I'll be holding aces. Am I doing the right thing?
