The Successful Investor Hotline – Friday, June 27, 2008

Article Excerpt

CANADIAN IMPERIAL BANK OF COMMERCE $58.24, Toronto symbol CM, moved down this week after Moody’s Investors Service downgraded the credit ratings of several bond insurers. These insurers provide CIBC and other banks with guarantees on securities they hold, such as bonds backed by U.S. subprime mortgages. The downgrades could lead to fresh writedowns of about $1 billion. In the three months ended April 30, 2008, CIBC lost $1.1 billion or $3.00 a share, mainly due to a $1.7 billion (after-tax) writedown of illiquid securities. However, CIBC still has enough capital to conduct its operations and satisfy regulatory requirements. Even the $3.48 dividend seems secure, and it yields 6.0%. CIBC is a buy. GENNUM CORP. $9.11, Toronto symbol GND, is starting to realize the benefits of its recent restructuring and the launch of several new products. In its second fiscal quarter ended May 31, 2008, sales rose 39.8%, to $33.0 million from $23.6 million a year earlier (all amounts except share price in…