Toronto-Dominion Bank TDOPF

Chris Blumas - BNN- BUY

[Possibleidiot01]

BUY

Toronto Dominion(TD-T)

16/10/2024

 

Stock price not stabilized yet.

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.

banks

 

$77.450

Owned

[Ocalaman]

The only reason they were well capitalized because they issued shares to buy FH which was not deployed because of these AML issues. Billions of the cash raised on the issue instead was spent on fines , a useless and unproductive way to deploy capital and not for intended purpose. The decision hwnded down last week was very clear that the search and prosecution of those involved is still ongoing, a