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Halftime Pt. 2: Does This Bank Belong In Your Portfolio?

Despite uncertainty over financial regulation, Toronto-Dominion Bank continues expanding presence in the US and projects its US bank profit to double over the next three years.

While on Monday's Fast Money Halftime Report, president and CEO Ed Clark says that to reach its target of $1.6 billion in annual earnings in three years, TD will continue to "aggressively" grow in the US. The Toronto-based financial institution added 1,200 US branches since 2005.

Clark says uncertainties over the US economy and financial regulation, however, has prompted TD to approach future expansion through FDIC assisted or smaller deals. TD recently made an offer to acquire South Financial .

The financial institution is also concentrating on lending. Clark says TD was one of few banks that increased lending in 2009 and expects lending to continue in 2010. TD sees a "huge" opportunity in the mortgage market.

What's the Trade?

Being as 54% of TD's banking is in Canada, Brian Kelly of Kanundrum Capital says you have to be a little worried about the Canadian housing market, which he thinks has "some elements of a bubble."

But if you like TD and feel confidant in Canada's housing market, then he thinks it's okay to buy.

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START TO EARNINGS SEASON

Corporate earnings season gets underway Monday with Dow component Alcoa reporting after the closing bell. In anticipation of earnings, stocks rose by 5% this past week—the best performance in a year. We're curious if you are buying Alcoa ahead of earnings and hope you'll vote in our Fast Money Poll of the Day.

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CALL OF THE DAY: FEDEX, UPS GET UPGRADED

Both FedEx and UPS got upgrades from BB&T Capital Markets and the analyst who made the call joined us on Monday's Fast Money Halftime Report. Before the show, executive producer John Melloy spoke with Sterling and wrote about the upgrades at length. Click here to read his blog entry.

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CALL THE CLOSE

"The volatilty is really cheap right now," says Pete Najarian of optionMONSTER.com. "Protect yourself and use that vol."

Joe Terranova of Virtus Investment Partners recommends staying long EMC .

"Keep looking for individual names and be weary of the overall market," says Zach Karabell of RiverTwice Research.

Brian Kelly of Kanundrum Capital would sell this market.

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Trader disclosure: On July 12, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova owns (GOOG), (AMZN), (MON), (APC), (GMCR), (MYL), (MRVL), (BAC), (ADI), (ADBE), (AKAM), (HES), (CVS), (AXP), (EMC), (ABT); Kelly Is Short (GS); Kelly Owns (BP) Puts; Karabell Owns (GOOG), (AAPL), (BP), (C), (GS), (FXI), (FCX)

For Joe Terranova
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (CASS)
Virtus Investment Partners owns more than 1% of (LDR)
Virtus Investment Partners owns more than 1% of (LPHI)
Virtus Investment Partners owns more than 1% of (MGRC)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLP)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLK)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (SUBK)
Virtus Investment Partners owns more than 1% of (WDFC)
Virtus Investment Partners owns more than 1% of (YDNT)
Virtus Investment Partners owns more than 1% of (DRYS)

For Zack Karabell
River Twice Capital Owns (MSFT)
River Twice Capital Owns (CSX)
River Twice Capital Owns (GS)
River Twice Capital Is Short (AA)
River Twice Capital Is Short (SPY)
River Twice Capital Is Short (QQQQ)

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (GME)
Accounts Managed By Kanundrum Capital Are Long U.S. Dollar
Accounts Managed By Kanundrum Capital Own (SDS)
Accounts Managed By Kanundrum Capital Are Short (BCS)
Accounts Managed By Kanundrum Capital Are Short (EWA)
Accounts Managed By Kanundrum Capital Are Short (EWI)
Accounts Managed By Kanundrum Capital Are Short (FCX)
Accounts Managed By Kanundrum Capital Are Short (FXI)
Accounts Managed By Kanundrum Capital Are Short (KMX)
Accounts Managed By Kanundrum Capital Are Short (NATI)
Accounts Managed By Kanundrum Capital Are Short (RSX)
Accounts Managed By Kanundrum Capital Are Short (USO)
Accounts Managed By Kanundrum Capital Are Short (WYNN)
Accounts Managed By Kanundrum Capital Are Short (XLF)
Accounts Managed By Kanundrum Capital Are Short (XLI)
Accounts Managed By Kanundrum Capital Are Short (XLE)
Accounts Managed By Kanundrum Capital Are Short (RCL)
Accounts Managed By Kanundrum Capital Are Short (CME)
Accounts Managed By Kanundrum Capital Are Short (HIG)
Accounts Managed By Kanundrum Capital Are Short (MET)
Accounts Managed By Kanundrum Capital Are Short (RKH)
Accounts Managed By Kanundrum Capital Are Short (CAT)
Accounts Managed By Kanundrum Capital Are Short (JOYG)
Accounts Managed By Kanundrum Capital Are Short (XLB)

For Kevin Sterling
BB&T Capital Markets Is A Market Maker In (FDX), (UPS)
BB&T Capital Markets Expects To Receive/Seek Investment Banking Compensation From (FDX), (UPS) In Next 3 Months
An Affiliate Of BB&T Capital Markets Received Non-Investment Banking Compensation From (UPS) In Past 12 Months

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