Toronto Dominion (TD-T)

Banks in general are entering a normal level. Concerns about high interest rates and defaults are mostly in the past. Banks are good to hold here if you want some dividend-paying stocks. Can't imagine this one will be stuck in the penalty box forever.

It has come way down with the money laundering scandal. It decided what it will pay but the stock dropped again so it has been doubly punished. Now trading below 10X - the valuation and dividend are OK. Has a new CEO and will manage the U.S. situation OK so could be fine over time. Any positive news could cause it to head back up so it is buyable.

Money-laundering fine. Asset cap on growth will really hamper growth in US. Perhaps can focus more on Canada where they've been increasing deposit base and credit card business. Depressed valuation is an entry point. Attractive dividend. Opportunity to turn it around over the medium term.

Is cautious the banks, but the band have rallied the last 6 months except this. He wold nibble at it here, that's all. Doesn't see the penalty for money-laundering being lifted.

If you're in a bull market, you want to own the strongest stocks you can find. He prefers "good, getting better", some kind of positive change that could add to the valuation, and where other people agree with him.

In penalty box. Facing painful changes. Many shareholders are underwater, so you have to fight your way through all those who just want their money back. He owns RY, CM, and NA.

Paid a huge fine recently, but remains among Canada's top two banks. The bad news is impacting the stock price, so there's lots of volatility. She sold TD 1.5 years ago and holds Royal instead. That said, it can go up from here, given the number of mortgages approaching renewal in the coming 12 months. Be cautious and wait for the share price to recover, despite its attractive dividend.

Current owners should own, and those who don't should pick up some shares now. Pays an attractive 5.2% dividend yield, and will offer some share appreciation over time as this recovers.

The penalty imposed by the US and the cap on growth led to these shares sliding hard. It now trades at 9.6x forward PE or 18% below its peers. So, the selling is overdone and he sees at least a partial recovery ahead. TD can still grows its Canadian market and capital securities business at 5% growth. TD ranks third in profitability on the basis of ROE .

Historical, unprecedented valuation discount (high teens) to peers. Before the money laundering and failed M&A clouds appeared, used to trade at high-single or low-double digit premium. Reputation tarnished. Cap on size of US balance sheet.

Will work night and day to make itself squeaky clean again and return to growth trajectory in the US. Excess capital to be deployed in some fashion by new CEO -- buy back shares, increase dividend, M&A. Good time to own and add.

Never owned TD because it was expensive, but it could be interesting now. We know the US fine. They can't expand in the US, so what will US earnings growth be? Also, the credit cycle has another 6-18 months, so how much longer will banks have to hold reserves? He might buy in the low-70s and high-60s.

Lots of worries from money-laundering fine to cap on US growth. Dividend's not in trouble. Beautiful balance sheet. No concerns about the business, but the growth won't be there.

Are you a bargain-bin investor with the patience to wait for it to recover? If yes, could be good value down here for long-term investors. He's not, and sold. Loves the Canadian banks long term. His favourites are NA and RY right now.

Most of the bad news should be reflected in the share price. While she maintains a position, has cut back weighting a bit, since growth profile will be muted because they can't grow in the US. The US side is about 1/4 of profits, so there is growth outside of that. Last quarter, Canadian division posted pretty decent loan growth and deposit growth. Attractive income stock, with capacity to grow dividend every year though not as much as previously. Capital position still strong.

For new $$, you'd be fine to start building a position over time and within a diversified portfolio. Shouldn't be your only Canadian bank holding.

Support around $75. He prefers to see a turn in relative strength. Relative laggard for the last year+, so not being recommended to clients. If you're in TD right now, closely watch that support level. If it moves below, suggests rotating further out of TD, as there might be more downside. So many pitches coming by, just let this one go.

In a tough spot, media has made it the whipping boy. Every single US bank has problems with money laundering, it's so pervasive. The fine came at the best time, as it was sitting on the most capital of any Canadian bank. Everyone knew what was coming, stock's been drifting lower for quite some time.

He owns it for the income, not the growth. He'd plug your nose and buy here, knowing it could go a bit lower. No one wants it on their books so there's been indiscriminate selling, which creates the value for you.

Compare this to WFC, which was in a whole heap of trouble due to problematic sales practices. Return since then is ~150%. The TD scenario is different. In these mature type of businesses, you'll get your dividend and a small bit of earnings growth. TD now has the lowest multiple of any Canadian bank, but will that be the case in 5 years? They all re-rate, and he thinks this will end up being quite a good return.

Has mixed thoughts. It's his favourite Canadian bank stock. The market had expected a $3 billion fine, but the 10% plunge in share price the last two days is reacting to TD not allowed to grow its core banking business in the US. Wells Fargo was hit with a similar fine and those shares have done little for 5 years. TD will probably recover back to $87 over the next little while. It will bounce, but will underperform several years compared to Canadian peers.