Tag Archives: InvestorLine

Astonishing 12 Month Target Prices for CU Reported on BMO InvestorLine: Should I Buy?!

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Earlier this year, CU split its shares in a get 1 for every 1 you already own offer. Ever since I’ve been keeping a closer eye on this very conservative stock trying to decide whether to sell part of my position. (It’s up 49% over what I bought it for.) When I looked at the 12 month target prices today, however, I was astonished.

What is Canadian Utilities Trading At?

Today, CU is trading at about $37.95 per share. It’s been in a range of about $34-38 per share since the split.

What are the 12 Month Target Prices from the Analysts for CU?

That’s why I got a shock when I took a peek at the 12 month target prices for Canadian Utilities on InvestorLine.

How to Look Up 12 Month Target Prices on InvestorLine

To see these values,

  1. From the Quotes & Tools tab, select Quotes +.
  2. In the Symbol field, type CU.
  3. Click on the Go button.
  4. Scroll down to the box on the right side of the screen with Recommendations and 12 mo. Target Price.
  5. Select the 12 mo. Target Price tab.

Be amazed!

The target prices listed are $74-$88! Wow! I guess I should hold on for the ride.

Or so I thought until I looked at the Issue Date for each of these pieces of advice. They all pre-date the split. Yep, that’s all it is. BMO InvestorLine didn’t ask the Sources to update their information in light of the split, so the old pre-split numbers are still reported.

Please Use Your Brain (and Common Sense) When Researching Stocks

To me it was obvious what was going on. But another investor might not be so lucky. If you hadn’t already held CU through the split, you might not know that it had happened. After all, the graph of the trading prices for the last year has been split-adjusted so there’s no obvious clue there. The 52-week highs and lows are also reported split adjusted.

All I can suggest is if you see a wild mismatch between price and target price, dig a bit deeper. If you go back through the annual news for CU you’ll find the split. If you look at the Charts you can find the split.

How to Look Up Stock Split History on InvestorLine

  1. From the Quotes & Tools tab, select Quotes +.
  2. In the Symbol field, type CU.
  3. Click on the Go button.
  4. Click on the Charts tab.
  5. Click on the blue Events button with the small down-facing arrowhead.
  6. Select Splits with a click.
  7. On the chart will be an inconspicuous S with a circle around it. If you hover the cursor over it, you will see a comment.
    For example, this one says
    “Stock split
    June 17, 2013
    Executed a 0.5 Split”

(That means that they issued 1 additional share for every existing share.)

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Have you ever noticed something really absurd when browsing around your brokerage site? Please share your experiences with a comment.

When Will I Get My Dividends in my InvestorLine and Investor’s Edge Brokerage Accounts?

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Before I opened a self-directed brokerage account at BMO InvestorLine I owned some shares that I kept in a safe deposit box at the bank. Every quarter, about a week before it was payable, a dividend cheque would arrive from the company’s agent. On the payable date, I would deposit the cheque in my account and could spend my capitalistic largesse immediately. So I was very curious when I first bought stock in my InvestorLine and Investor’s Edge accounts to see when the dividends would appear.

BMO InvestorLine Is Not Too Swift

I was a bit disappointed to discover, and verify over many payments, that BMO InvestorLine takes one full day after receiving a dividend on my behalf to post it to my brokerage account.

For example, Cineplex, which pays a monthly dividend which is great for income seekers, paid its June dividend on July 31 this month. If I had received a paper cheque in the mail, I could have cashed it and spent the money going to a movie that night. With InvestorLine, however, the money doesn’t appear in my account ready to spend till the morning of August 1.

Frankly given this is all done electronically, I’m a bit surprised by the delay. Since the paper cheques are mailed and delivered to my home several days before the payable date, one would think the electronic file would be available ahead of time too.

Now let’s look at Investor’s Edge.

CIBC Investor’s *Edge* Isn’t a Faster Dividend Payment

CIBC may be trying to give investor’s an edge but if they are it’s not by paying them their dividends on the day they are earned. Just like BMO, CIBC is taking one full day after receiving a dividend on my behalf to show it in the transaction history and cash balance of my brokerage account.

Is There a Benefit to Brokerages In This Delay?

Having a nasty suspicious mind, I wonder whether there is any benefit to the brokerages in this delay. Where is the money during the missing one day? Still in the issuing company’s bank account? Or sitting in an undisbursed slush pile in my brokerage? I think I should send a secure email by MyLink to BMO InvestorLine and ask them.

Checking Your Transaction History for Your Dividends

I’ve mentioned before that BMO InvestorLine back dates dividend payments to when they should have been made in the Transaction History.

CIBC Investor’s Edge does the same thing in its Transaction History.

Why Does It Matter If the Dividend Shows Up a Day Late?

For ultra conservative slow poke investors like me, it doesn’t particularly matter if the dividend payment is made a day late. But I can see how it might matter to others:

  • if there is a great buy available on the day the dividend money should have been available, it must hurt to watch it slide out of reach while waiting one more day: even GIC rates flutter day by day
  • if someone is using the dividend income to pay bills, even a day’s delay might cause problems depending on how the dates line up between bills and dividend payments

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When does your brokerage pay your dividends? Remember you can’t always tell by the Transaction History. You may have to actually check your cash balance on the day the money should have appeared. Please share your experiences with a comment.