The Successful Investor Hotline – Friday, June 18, 2010

Article Excerpt

CANADIAN IMPERIAL BANK OF COMMERCE, $74.75, Toronto symbol CM, is buying the Canadian MasterCard credit-card business of U.S.-based Citigroup Inc. (New York symbol C). Right now, CIBC only issues Visa cards, so this purchase will diversify its credit-card business. The bank did not reveal the purchase price. However, the Canadian MasterCard business has $2.1 billion of outstanding credit-card loans. As of April 30, 2010, CIBC had $12.4 billion of credit-card loans outstanding. The bank expects to complete this purchase by October 31, 2010. It should add to CIBC’s earnings in the first year. CIBC is a buy. SUNCOR ENERGY INC., $34.44, Toronto symbol SU, has agreed to sell its oil and natural-gas operations in the Netherlands to U.K.-based Dana Petroleum plc. The sale includes offshore exploration licenses, producing oil fields and its 12% stake in an onshore natural-gas storage facility near the city of Alkmaar. The sale will generate $582 million for Suncor when it closes in the third quarter of 2010. To…

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