Topic: How To Invest

The Successful Investor Hotline – Friday, August 5, 2022

Article Excerpt

TORONTO-DOMINION BANK, $83.44, Toronto symbol TD, is a buy. The bank has agreed to acquire U.S.-based investment banking firm Cowen Inc. (Nasdaq symbol COWN). Founded in 1918, Cowen provides a wide range of services to corporate clients, including brokerage, stock and bond underwriting, initial public offerings and advice on mergers and acquisitions. TD will pay $1.3 billion U.S. in cash when it completes the purchase in the first quarter of 2023. To put that cost in context, it earned $3.71 billion (Canadian), or $2.02 a share, in the quarter ended April 30, 2022. To help pay for this acquisition, TD has sold some of its shares in U.S. discount brokerage firm Charles Schwab Corp. (New York symbol SCHW) for $1.9 billion U.S. That cut its stake from 13.4% to 12.0%. The purchase gives TD access to Cowen’s high-quality clientele and should boost annual revenue at its combined investment banking business between $300 million U.S. to $350 million U.S. by the end of the third…

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