TD certainly has had some recent issues, but the 9X earnings valuation at least partially reflects these. The short interest ($3.7B) was more of a media event than anything else. On a percentage basis short interest is only about 4%, not out of line with many other stocks and only percentage point or so more than other banks. Its US acquisition could be re-priced or even cancelled. All banks have housing exposure. TD owns about 9% of SCHW but the US bank crisis seems to be abating a bit. We are not discounting any of these problems, but they are widely known and are getting lots of media attention, so the stock price at least reflects this: buyers know what they are getting into. It may take a while for things to settle in, but we would not panic here.
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