Subject: Re: TD Bank
TD might be a consideration. They got caught with poor internal controls and have been fined and had capital restrictions placed on them (sound familiar)? The stock of course has gotten hammered and its now trading at a fair discount to their peers.

Its trading in the mid $50s / share (USD) now ($57 as I type this); would not at all be surprised to see outperformance and a return to the upper $80s - even if the market is flattish over the next 2 years or so.

Not a bad risk/reward IMO


Maybe so, but a major risk factor that is worth considering is that Canada's economy may be in for a world of hurt, with the Trump tariffs. Canadian real estate is among the most expensive markets in the world, despite Canada's sluggish economy, and seems due for a correction. If the tariffs throw Canada into a recession, which they may well do, then RE prices have room to drop dramatically. In that case, TD would take very heavy losses, as most of its activities are in Canada.

The other thing to consider is that their share price has actually not gotten hammered - it is actually up 3% from the C$80 it was at a year ago, which represents 17 times earnings. In US dollars, it is down about 3%, but that is just because the Canadian dollar has dropped about 6% from a year ago.

dtb