Toronto-Dominion Bank (TD.TO)

Very bullish on Canadian banks in general. Canadian regulators don't care if TD makes more US acquisitions, as long as capital ratios remain in line. US regulators care, however. Widespread regulatory crackdown on money laundering will result in a fine, insignificant in the grand scheme.

Canadian banks have underperformed for 2 years in a row, which is very strange. Will probably be fined for money laundering issue. Lots of cash on hand. 10x earnings, 4.75% yield, paid to hold the stock. Should be able to beat expectations over the next year.

It has had a rough go related to money laundering. It is well run but a laggard in the space and he wants to see a better technical picture which means more people are interested in it. It is better to look at something else - he owns National Bank and Royal Bank. He is not value focused and wants to see the tech picture to line up with the fundamentals picture.

His third favourite of the 5 big banks, solid bronze medalist. 

He owns RY and TD in the space. More stable and diversified than the others.

A year ago, they were trying to buy First Horizon Bank, but now have at on of cash because they didn't buy it. But his cash is a drag on earnings for not being deployed. Is the most defensive Canadian stock. though has underperformed peers recently. They will find the right acquisition that works and will clear out money laundering allegations.

One of the better banks in Canada. Difficulties with First Horizon deal collapsing. Legal issues. Integrating Cowen. Reduced expectations, so possibility they'll beat those. Not expensive at these levels, great dividend, flush with capital. Interest rate environment will work in its favour. 

Overhang due to US issues from First Horizon plus anti-money laundering procedures. Still a great bank. Well positioned in US, very strong deposit base in Canada. Low funding cost for loans and mortgages. Lots of capital. 

Continues to think the franchise value is there, strong, and growing. In the wake of failed acquisition, question marks surrounding leadership and strategy. Best way to answer this is to put up good financial performance. Continues to own and buy.

Lots of excess capital gives them flexibility. Buy if you're looking for income.

The last quarter disappointed investors and it was the only bank to announce re-structuring for next year, not just the last quarter as the other banks did. There are $500 million in expenditures needed for risk management and anti money laundering controls. Therefore the stock price has dropped but once this has all settled down it should be able to catch up to its peers. It pays a dividend of almost 5%.    Buy 9  Hold 6  Sell 1

It is OK on the monthlies but financials haven't done too much and there are better places to be. You could own TD or Royal Bank for the long term but don't buy for a trade since it could head down.

Same comments as with Royal Bank. Both enjoy a regulated oligopoly. TD is well exposed to the US and enjoys a healthy wealth management business. TD is heavily capitalized, more than RY, because they couldn't buy First Horizon last spring. They can raise dividends, buyback shares and/or buy companies. Trades at a discount to the 5-year PE. The dividend will grown. Expect double-digit returns. He doesn't see a housing bubble, though housing supply is short as immigration inflows remain strong. That said, TD is exposed to a potential downturn in housing prices, but is a short-term headwind.

Banks in Canada are trading at good prices. TD has more capital than other Canadian banks so it is in a position to make acquisitions. Also it is geographically diversified. It has a 4.6% dividend and trades at 10X earnings. In general Canadian banks are well regulated and more diversified than U.S. regional banks. They are also good at reserving for when times are bad. The risk is that there are more variable rate mortgages in place.
Buy 11  Hold 4  Sell 1

A favourite of his. A good time, generally, to start looking at the banking sector to get back in.