Should have good growth. 2 risks facing all banks. We are topping out on the credit cycle so you want to look for a bank with less exposure there. TD has a very large retail presence which tends to immunize them. All banks are generating a significant amount of capital and feel that this one will deploy it for good growth through their US bank.
You should own US stocks when the Canadian $ is weakening, not gaining strength. However, there is still risk of the US$ going up. Prefers to invest in the US financials through toronto Dominion (TD-T) and its US subsiduary.
Not sure where the short term oil prices are going, but longer term, feels that higher oil prices will be more than they have been historically. Have been able to show growth through both the drill bit and good acquisitions.
Presently we are in a scenario of $40/50 oil prices and $8/9 natural gas prices for the next 12/18 months. This stock is attractively valued at about 4 X enterprise value to EBITDA. Generating close to $5 billion in cash this year.
You have to cognizant of the fact that because they are operating in Egypt, they don't get world price for natural gas. They are building L & G facilities on the coast which will allow them to get a world price. Sees some upside in their production level.
Thinks there's upside for the company to continue to grow production and also feels that the pricing of nickel and copper will see some steady pricing for the next 12/18 months.