Toronto-Dominion Bank (TD.TO)

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.

Likes the dividend and the earnings growth. With the dividend and capital appreciation, he sees a mid-teens upside for this bank. Likes the acquisitions they have made. 3.8% yield.

(A Top Pick Oct 6/11. Up 13.89%.) Great Canadian retail bank. Has done some great acquisitions in the US. Should continue to grow.

Buy April 80 Calls at $3.60. The combination of a dividend increase and an increase in the dividend payout rate tells him that the board is not only content with the trend in their earnings but also content with the sustainability of those earnings. He thinks you could see this stock at $87 by April.

Increased its dividend twice this year. Less volatile because they are more into retail banking. Their US retail is bigger than their Canadian retail now. Just made an acquisition of Target’s (TGT-N) US visa and private label card portfolio. Over time, this makes sense for them.

One of the cheapest of the big 5 banks. Yield is probably one of the lowest as well as the price to cash flow. Given what they have done with the target receivables recently and given the focus on building up the credit card businesses, he sees this as an opportunity to benefit in 2 ways. First, the cost of capital for these entities will decline and secondly, given the competitive space in mortgages and consumer borrowing, it’s a great way to boost long-term earnings. He sees a 10% upside in the next 12 months plus the 3.76% dividend.

Has certainly been one of the more popular banks. Been quite successful in terms of US expansion. But the yield is significantly lower than what you can get in a lot of the other banks. He thinks you can see better value and yield in other banks.

(Market Call Minute.) His favourite bank.

Has done extremely well on the US banking. Known as the best service bank in Canada. In the long-term he feels their strategy will do well but they are heavily retail oriented and not quite as diversified as some of the other banks. Feels some of the other Cdn banks are more attractively priced.

Preferred bond. After 2023 they won't qualify as tier 1 capital. So it will probably be called. They could take it away next year and you could lose money.