Toronto Dominion (TD-T)

Q1 was a much-needed low-drama quarter. Schwab sale. Market appreciated the quicker CEO transition. Wealth management good, strong capital markets. Still trading at a premium to the group, and that's not warranted because of growth limits in US.

All banks are at risk if economy darkens. But if economic environment is OK, he thinks BMO has the best upside.

Asset cap in US will be in place for a number of years; once it's eventually lifted, that will be an avenue for growth. US accounts for about 25-30% of earnings. Bank feels it can still grow in Canada. Valuation still quite attractive at 10x PE. Path back to growth will take a while. Yield is quite attractive too.

Likes TD a lot. Very undervalued at 10x PE. Potential for multiple to rerate in medium term. More upside as it distances itself from the overhang of regulatory infractions. All that should give you a better total return. He'd pick TD.

For BAC, even with deregulation in US, the big banks are already so large, it's hard to imagine they'd be allowed to get even bigger.

Avoided it since money-laundering issues in 2022. Lots of shareholders are stranded at higher prices, who would be sellers if they got their money back. He owns RY.

The big banks face challenges, because the homes bought during Covid, when interest rates were rock-bottom, are and will pay much higher rates. TD is very tied to home mortgages, so be careful. Also, they're restricted from growing their business in the US for 4-5 years. He sold it, because the future didn't look great. He bought more Royal instead.

Canadian banks are cheap. If you don't buy now, then when? Yield is over 5%.

Issues in US last year, and growth is probably capped there. Strong Canadian branch presence with consistent earnings and growth. Still have to see new management performance. Increased costs due to compliance and risk assessment procedures. Stock's done well, still some room to go.

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.

Turned the page on money-laundering fine, but the fix won't be overnight. Likes the excess capital on the books. Applauds its plans for share buybacks, focus on capital markets, and strengthening its Canadian franchise. #1 discount brokerage platform in Canada.

It has had a good jump from last fall and the upside now is pretty gradual with the earnings upside in the last quarter being pretty flat. It is upgrading what they have and re-investing into higher yield products for better portfolios. Upside could start next October close to the fiscal year end.

Just moved up off the bottom of a very long-term channel. Long way to go to get back to usual high. Still under both Canadian and US regulatory scrutiny. Very well run, aside from a nasty US stumble. Quality and value will come through.

Issues with money laundering. Stock price has started to recover, but yet to regain its lustre. He'd rather own the best-quality banks, which are RY and NA.

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.

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.

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.