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Royal Bank of Canada (RY)
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Bank of Nova Scotia (The) (BNS)
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Bank of Montreal (BMO)
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Alimentation Couche-Tard Inc. (ATD)
Q: Hi, I'm considering adding a Canadian bank. I only hold TD. Which bank would you consider to be the best to add at this time for a longtime core holding? I'm thinking of doing a quarter position at this time and build that position over time. Also I started a quarter position in ATD recently and I'm watching it at the moment. Would you consider ATD to be fairly safe at these levels and an attractive stock to increase that position at the current price or wait to see if it's still in the bottoming process. Thank you as always for your expert advice!
5i Research Answer:
We would be comfortable buying ATD today for a long term position. It is well below typical valuations. On banks, we think RY would be a good pair with a TD current holding. RY is the largest CDN bank, and in a time of uncertainty is the safer choice.