Tuesday, December 9, 2008

TD Bank 2

I want to review today what people on saying about this stock (TSX-TD). For this bank, the EPS was lower than expected because of write-offs. Some analysts, for 2008, are quoting an EPS prior to the write-offs and some are quoting the final EPS as per the annual statements. This is why you will see different EPS for 2008, depending on a site and the analyst quoted.

The ratings on this bank are from Strong Buy, Buy and Hold, with the average being a Buy rating. The current price of $42.62 is below the Graham Price of $65.45. The P/E of 7.46 is below the five year average of 13.26. The yield 5.73% is higher than the 5 year average of 3.11%. These things are pointing to the current price being a good one for this stock.

If you look at the charts, this stock has done as well as TSX and the Financial Sub-index year to date. For the last 3 and 5 years, this stock has done as well as the TSX and slightly better than the Financial Sub-Index. For the last 10 years, it has done better than the TSX, but not better than the Financial Sub-Index. Most analysts seem to feel that this stock will do fine with their EPS. I do not see any problems with this stock going forward.

I bought this stock in 2000 and since that time, I have made a return of 6.6%. This is low for a bank, but we are currently in a bear market. I expect that on a long term basis I will do much better. The dividends make up about 4% of the returns on this stock.

They are a bank with full range of financial products and services for individuals and corporations in Canada and USA. Its web site is www.td.com. See my spreadsheet at www.spbrunner.com/stocks/td.htm. I have reloaded my spreadsheet

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.

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