Canada stocks closed lower on Friday, down 74 pts. Most sectors
were lower, driven down by Metals and Mining, but Healthcare bucked
Two heavyweights - Blackberry (BB.TO, BBRY) and Canadian
Imperial Bank of Commerce (CM.TO, CM) - were very much in the
moved higher on Friday, with the June 2014 WTI contract closing up
US$0.52 per barrel at US$102.02. Gold prices eased closing the
Friday session at US$1,292.4 down $US 1.2 per ounce.
CIBC (CM.TO, CM), shy of 52 week highs, Thursday recorded a
non-cash goodwill impairment charge of C$420 million after-tax
relating to its investment in CIBC FirstCaribbean International
Bank Limited for the second quarter ending April 30, 2014. It said:
"In light of persistently challenging economic conditions in many
Caribbean countries and our current expectations for conditions
going forward, we have reduced the carrying value of the goodwill
related to CIBC FirstCaribbean. The goodwill impairment charge is a
non-cash item and does not affect ongoing operations or capital
ratios." In addition to the goodwill impairment charge, CIBC also
recorded C$123 million after-tax of incremental loan losses for
CIBC FirstCaribbean, reflecting revised expectations on the extent
and timing of the anticipated economic recovery in the Caribbean
Blackberry reportedly found a buyer in Point72 Asset Management,
but had sellers in Third Point and Fairfax Financial (FFH.TO). It
also lost a director.
Point72 Asset Management, the hedge-fund firm founded by
A. Cohen, has taken new stakes in BlackBerry, according to a
regulatory filing, a Wall Street Journal Blog said late Thursday
afternoon. The blog said Point72 purchased 11.2 million shares of
BlackBerry. It added the firm is betting on a successful turnaround
of BlackBerry, which has seen its share of the global smartphone
market tumble in recent years.
Meanwhile, activist fund manager Dan Loeb's Third Point cut its
stake in BlackBerry, selling 10 million shares, according to a
filing that came out late Thursday. This came just hours after news
that Prem Watsa's Fairfax Financial had sold 5.2 million
In related news, director Bert Nordberg won't stand for
re-election just a year after he was added to the board. According
to Bloomberg, this leaves Blackberry with six board members.
Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.