Investment Q&A

Q: Hi 5i, for better growth over the next 3-5 years would a switch from to TD to CWB, so as to take advantage of discount, make sense? I'm worried about TD being put in the penalty box for any new US acquisitions.

Thx

Q: Hello

I recently submitted a question on TD, expressing concerns about possible lingering ill effects due to the money laundering episode. In a nutshell, 5Is position was that there was little concern on their part about TDs future and that most banks are subjected to the same money laundering threats. Just received this presser:

"Toronto-Dominion Bank's anti-money laundering program will take longer to cure and could have a greater and more damaging impact on the bank's franchise and earnings power. After confirming TD Bank's AA credit rating in May, additional shortcomings in the program, controls and operational risk-management practices have surfaced. Morningstar expects additional investment in risk and control infrastructure and expected monetary and non-monetary penalties, as well as the ongoing attention of leadership on remediation efforts, will act as earnings headwinds. There also is a risk regulators conducting investigations will reveal other related and/or unrelated issues, it says."

Still little concern on your part?

I did sell a third of my TD holdings after receiving your input. It was my largest holding.

Carl

Q: Are any of the other large Canadian Banks similarly exposed to investigation/prosecution in the U.S. for the same activity that TD was convicted? Also, can to tell me what % of each banks total business revenue comes from U.S. sources?

Q: Would this be a good time to sell TD because of there US problems and buy RY for long term dividends and safety?

Q: Would BMO be a good proxy for TD? Mid and longer term which do you see as more likely to do better? Please explain your reasoning.
Other banks or other high yield suggestions for proxies?
I have lots of BNS.
Thank you.

Q: I understand that TD will face a fine of some large amount, and I feel they can overcome the fine. My concern relates to TD getting a fine plus curtailment of doing acquisitions in the US for a period of time say five years. Should not a curtailment of US acquisitions be the most worrisome for investors?
Mike

Q: I'm wondering which of these stocks would be best to move from a RRIF into a CDN TFSA? Thanks.

Q: Hi 5I. My largest holding is TD and I am going to reduce it by a third. Reasons are mainly concerns of future US growth because of the money-laundering stain. The potential fine is not as concerning as being shunned by investors resulting in stunted growth in the US. With the proceeds I was thinking of adding to my RY holding and taking a position in IFC. Or should I be looking at another big 6 such as NA or ...? Thanks in advance.

Carl

Q: Dear Peter et al:

You can call me a "Nervous Nellie" if you want (!) but I am older than you and know that sometimes the story like TD to play out can take a looong time!

If one is sitting in a small loss position in TD, worth switching to another bank like RY or BNS? Or move into a riskier stock like GSY or an insurance co like SLF? I know it is comparing Apples VS Oranges. Nothing against TD. I am sure it will bounce back. But I can "see" it moving sideways for a while. Just an old man's opinion.

Q: What are your views on TD earnings and what lies ahead? Stock performance is very disappointing. How long do you think it will take for TD to surface and start moving upwards. Looking for a view over the next 3 - 12 months or will it take longer than this? I guess I should ask how much lower you think it might go? When should buyers start buying?

Q: I'm considering starting half a position in TD. How does its current valuation compare to historical averages?

I read your response to a question where you say that TD is the cheapest of the bank stocks in Canada. How far out of sync is its valuation compared to its peers?

Q: Hello,

What are your recommendations for Canadian banks for a TFSA with a 15+ year horizon?

Q: I read a more detailed US legal article on the TD money laundering scandal in NY/NJ and was quite disturbed. It has been a core holding of mine for a full decade. Thinking of taking it down from a full to a half position while the DOJ probe and further sanctions play out. Would you caution against this at this time (with damage already done to stock) or do you think its a prudent move?

Q: I never thought I would be contemplating whether or not to continue to hold these “sleep at night stocks” but here we are. I have no doubt they will recover but in what timeframe? I am particularly concerned about TD. I believe regulators are going to set an example. I am 75 years old and time is at a premium. Please give me some guidance.

Carl

Q: Could you please recommend your top 5 solid, dividend-growing companies? what would be your buy prices for each? Thanks.

Q: Hi group I have taken profits on QSR,MCD,GSY,BYD,WSP,CSU,ARC. So my question in what order and at what price do i get back in i own the others, as listed so please rate them also for adding same format. Thanks for your help with this

Q: Follow-up to TD proxy, I already have a FULL position in RY;; next choice?

Q: Looking for a proxy replacement for TD. The near to mid-term prospects for the bank appear uncertain at best and perhaps subject to substantial fines and/or restrictions to future M&A etc. at worst. What comparable financial institution would you suggest as an substitute. Many thanks, Rockdoc

Q: With regard to the money laundering attibuted to TD in their US branches. The media reports referenced "duffel bags" of cash presented to tellers for deposit.
Is there not a rule or regulation that any cash transactions over $10,000 as being required to be investigated. or is that in Canada only Also would not the other tellers/manger not see this happening? Sounds crazy.

Q: With regard to the current fiasco, would you expect any heads to get nicked, especially at the top, for having this happen on their watch? The amounts of money alleged to have been washed is incredible. Or am I guilty of armchair quarterbacking?