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Posts with tag Toronto-Dominion Bank

The week in preview: Earnings expectations for techs, Canadian banks

Results for the tech stocks in last week's preview were a mixed bag, some beats, some misses, some in line. By and large, expectations for tech companies reporting results this week remain high, though. Here's what analysts surveyed by Thomson Financial are anticipating in the way of earnings, as compared to the same period of the previous year.

Continue reading The week in preview: Earnings expectations for techs, Canadian banks

BCE buyout gets a good call from Canada's Supreme Court

Back on May 21st, the $34.1 billion buyout deal for BCE (NYSE: BCE) looked bleak. A Quebec court ruled that the process had to stop -- so as to evaluate the impact on bondholders. As a result, BCE's stock price plunged from $37.83 to $33.10.

Of course, the decision was immediately appealed to Canada's Supreme Court. And, it was a savvy move. Today, the high court agreed to allow the BCE deal to move forward (this is according to a report in the Wall Street Journal, which is a paid publication). In fact, there was no rationale provided (instead, this will be provided at a later date).

However, there are still headwinds on the buyout. Simply put, the credit crunch is still lingering and making it extremely difficult to pull off mega financings. The banks on the deal include Citigroup (NYSE: C), Deutsche Bank (NYSE: DB), Royal Bank of Scotland, and Toronto-Dominion Bank. Of course, they don't want to sustain any more losses on their balance sheets.

Then again, this does not mean the deal will fall apart. Rather, there will likely be pressure to renegotiate the price tag on the transaction. After all, this is what happened with the buyout of Clear Channel.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Income expert banks on Canada

"Almost untouched by the subprime scandal and the subsequent credit fallout, Canada's banks are strong and their risk of writeoffs are consider by most analysts as minor," notes Genia Turanova and Gregory Dorsey in Leeb's Income Performance Letter.

Here, they look at two favorites in the Canadian banking sector: Toronto-Dominion Bank (NYSE: TD) and Royal Bank of Canada (NYSE: RY).

"Toronto-Dominion and its subsidiaries, collectively known as TD Bank Financial Group, serve more than 14 million customers. The group offers a full range of financial products and services including wholesale banking securities, personal and business banking, wealth management and U.S. personal and commercial banking.

"TD Bank is looking to expand its US presence by acquiring New Jersey-based Commerce Bancorp. After the acquisition is completed, TD's US banking operations will double. As for the hot topic of all financials these days – its subprime exposure – Commerce Bancorp's $16 billion loan portfolio has no subprime exposure.

Continue reading Income expert banks on Canada

Investing in Ontario: Research in Motion (RIMM), Nortel Networks (NT), and IMAX (IMAX)

My recent Investing in Ontario post took a look at the Royal Bank of Canada (NYSE: RY), Manulife Financial Corp. (NYSE: MFC), and Toronto-Dominion Bank (NYSE: TD); three public companies examined by the Motley Fool this past summer.

However, Ontario is more than just Canada's financial center. Its abundance of resources and location on Great Lakes have made Ontario a manufacturing powerhouse, including steel production and automobile manufacturing in southern Ontario, and mining and forestry in the north. Toronto is Canada's film and media center, as well as an important tourism destination. Niagara Falls is one of world's most popular tourist destinations. Other Ontario companies the Motley Fool liked include Research in Motion Ltd. (NASDAQ: RIMM), Nortel Networks Corp. (NYSE: NT), and IMAX Corp. (NASDAQ: IMAX).

Research in Motion (RIM), Canada's largest public company, is well know for its BlackBerry smart phones, but it also provides software development tools and produces radio-based modems used in portable devices. The consensus recommendation of analysts surveyed by Thomson Financial is to buy RIM, and has been since April. RIM met analysts' earnings per share estimate when it reported second quarter FY2008 earnings in early October, and Wall Street expects EPS of 62 cents in the third quarter, double the 31 cents actual from a year ago. RIM has a five-year EPS growth rate of 73.5%, easily beating the S&P 500 and the technology sector average. RIM's share price has been climbing since a share split in August, to reach a 52-week high of $128.36 on Tuesday; it opened today at $124.75. Also this week, RIM announced plans to sell the BlackBerry in China, and introduced Facebook for the BlackBerry as well. For more on Microsoft Corp.'s (NASDAQ: MSFT) challenge to RIM and other RIM-related news, see Bloggingstocks' RIM coverage.

Continue reading Investing in Ontario: Research in Motion (RIMM), Nortel Networks (NT), and IMAX (IMAX)

Investing in Ontario: Royal Bank of Canada (RY), Manulife Financial (MFC), Toronto-Dominion Bank (TD)

Its abundance of resources and location on the Great Lakes have made Ontario an economic powerhouse. Canada's capital, Ottawa can be found there, as well as its largest city, Toronto, which is also Canada's financial hub. Seven of Ontario's eight largest companies are financial institutions, and Toronto is also the home of one of the largest stock exchanges in the world. When the Motley Fool took a look at stock investment opportunities in Ontario this past June, three of the companies they focused on were financial institutions: Royal Bank of Canada (NYSE: RY), Manulife Financial Corp. (NYSE: MFC) and Toronto-Dominion Bank (NYSE: TD). Considering the credit crunch and the weakness of the U.S. dollar, I thought it might be interesting to see how those companies are faring now.

The Royal Bank of Canada, also known as RBC Financial Group, is Canada's largest financial institution. It has 1,300 domestic locations and offices in 30 countries. In September, RBC's Gord Nixon won Canada's Outstanding CEO of the Year award for 2007. More recently, RBC announced the acquisition of a Caribbean bank, and it was one of four Canadian banks affected by restructuring at VISA. With RBC's five-year earnings per share growth rate of 26.5% (better than the S&P 500), the consensus recommendation of analysts surveyed by Thomson Financial is to buy RBC, despite missing earnings expectations for the past two quarters. RBC's share price is near an all-time high on the NYSE, closing Thursday at $57.09 on the NYSE. RBC will release its next quarterly report on November 30.

Continue reading Investing in Ontario: Royal Bank of Canada (RY), Manulife Financial (MFC), Toronto-Dominion Bank (TD)

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Last updated: November 22, 2008: 08:15 AM

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