Stock price when the opinion was issued
With the money laundering scandal, she trimmed. Still has US operations, so will benefit from capital markets activity. Can focus on its Canadian operations. Kept it because of its very attractive valuation and yield. Can still grow in other areas; US retail represents only 25% of earnings. Very strong balance sheet, can use it to buy back stock.
The issue was in the U.S. resulting in a big fine but that is now out of the way. TD now has an opportunity to get rid of businesses not giving a good rate of return and an opportunity to do a better job than other banks. It has more exposure to the retail side. Also volatility helps investment banking. TD is under the microscope.
Beat today, strong capital markets, strong trading especially in the US. Shrinking balance sheet to comply with US regulators. Earnings estimates for all banks have come up a lot. All banks will go higher if no tariffs and our economy stays good, though TD will probably participate least. In the penalty box.
If tariffs go on and stay on, credit loss provisions will go up quite a bit. Only buy if you feel tariffs aren't going to happen.
Canadian personal and commercial businesses are excellent and dominant. US business is a fixer-upper, and they will. Wholesale business is subject to the vagaries of the capital markets. Wealth management is quite good. Watch DIY investing, as it seems to be doubling down on growth aspirations. Liked the Schwab sale; using proceeds to buy back shares. Dark clouds are finally parting.
Held up fairly well all things considered, as money's rotated out of large-cap financials. Support is around $74 with the December retest. Bumping up against resistance close to $86. That's the range, and we're waiting to see if it goes through. Financials have started to struggle, so this could go either way.