Toronto-Dominion Bank (TD.TO)

Preferred Shares Moved into Common? If interest rates rise then preferred do poorly. Rule of thumb is if you are bullish on the company then you buy the common. But now that they are at an all time high, move over into the preferreds. Move back when TD-T corrects 15%

(Market Call Minute) Yield is attractive and sees dividend increases at the end of the year.

He doesn’t like the banks here. They are at the high end of their range. This is a decent time to raise some cash in the banks. This is a trading call and not a fundamental call.

Doesn’t think there will be a pullback in the near term. Even a year out it will trade around $88.50 with under a 4% yield. Look south of the boarder if you want a little more risk. Canadian banks will do their thing here but there is nothing wrong with them.

This and Bank of Montréal (BMO-T) have the cheapest price earnings ratios at about 10.6%. Good growth. As the general economic activity picks up in the US, this will auger very well for them, plus its new card business. Price target of $90 plus the 3.69% yield makes for a very nice return. Look for an entry point of $82-$82.50.

Bank of Nova Scotia (BNS-T) or Toronto Dominion (TD-T)? TD has more of the personal banking and have that space going very well and, obviously, Scotia has a Latin American exposure. With Scotia you are paying out 11X, which is similar to TD. The only difference is that he thinks TD will increase its dividend a little bit quicker over the next 2-3 years. Likes Scotia’s Latin American exposure.

Banks are at the high end of their ranges. He would wait for some kind of pullback of 5-10%. Don’t chase them. $78ish is a good entry point. 52 week lows could be retested due to Cliff issues.

Banks. TD is their favourite right now. Somewhat lower yield, but she likes the US exposure. Probably better dividend growth than earnings growth over the next few years.

Toronto dominion (TD-T) or Telus (T-T) for a TFSA? Neither one of these is a bad bet. Telus is the one that he would want to own. This bank, in the short to intermediate term, will continue to do well. Banks in general will be long-term challenged as to where they get their growth. Their growth in retail banking in the US is positive.

Likes their exposure in the US. Fully recognizes that Canada is going to be tough in 2013, probably getting better in 2014. The real plus will be some of the acquisitions they’ve made, the credit card business and further consolidating their position in the US. Expects US will produce great profits for them.

Bond Resets. 2009-$25 maturing in 2014. Should I sell now with capital gain or hold to maturity at issued price? These are rate reset bonds and are callable at the bank’s option. You should never be buying a bond and giving away the options as they will be exercised at the worst time for you and the best time for the issuer. Believes they are currently trading at $27 and he believes the bank will be calling them so it doesn’t matter whether you sell or the bank calls them.

Earnings this morning fine, nothing spectacular. Announcement of an acquisition, which they have had a good track record of integrating. Best run bank in Canada. Not at a premium. Lower yield is something he has to live with for the better growth.

Usually they like to split in the $70/$80 range. But he doesn’t feel it does anything for the value. Recovered all of losses from 2008 plunge. Great management team, wishes he held it.

(Top Pick Nov 2/11, 14.53%) Likes Canadian Banks. We have great banks that are competitive and we have great people who oversee our banks. You should continue to own our banks.

They have been expanding in the US in a smart fashion. But they are kind of being the market darling, so he wants to find one selling at a discount, rather than a premium. They had good results in wholesale and retail sides. The other banks were selling at more attractive valuations when he bought them.