AFF Member Stock Discussion

[amaroo]

 

[drron]

I think when deciding whether to invest in financials now Benjamin Franklin's advice is spot on.
‘An investment in knowledge pays the best interest’

 

[cove]

I went to the Cash Converters AGM on Monday and I was quite impressed with their CEO. If they do what they plan their share price will acknowledge that they are the largest buyer and seller of second hand goods in Australia. Not one for the faint hearted but Wilson has spotted it as a cheapie.
Having tyre kickers come to your home to buy something you advertised on a website can bring criminals to your door is why that side of the CCV business is going so well.

 

[cove]

I think I need to take up Atlas Arteria share offers. They are fully out of Macquarie Bank management fees now.
I decided to buy a few Westpac shares at $24.50. I can have a long face if they drop to $20.....

 

[Dr Ralph]

I think I need to take up Atlas Arteria share offers. They are fully out of Macquarie Bank management fees now.
I decided to buy a few Westpac shares at $24.50. I can have a long face if they drop to $20.....

Not taking part in the SPP?

 

[Buzzard]

I think I need to take up Atlas Arteria share offers. They are fully out of Macquarie Bank management fees now.
I decided to buy a few Westpac shares at $24.50. I can have a long face if they drop to $20.....

I have enough bank exposure but if Westpac went sub 20....

 

[cove]

One broker I spoke to had 18 of 20 drop out on Westpac SPP.
I am flying to the US so I will look at it in Los Angeles before it closes.

 

[drron]

Not sure I want to try and catch a falling knife.

 

[cove]

UBS upgraded Westpac from sell to neutral so that may have taken some sharpness off the knife. I had sold at $28.99 so I have started buying them back.

 

[Jacques Vert]

Not taking part in the SPP?

One broker I subscribe to has downgraded their recommendation on the SPP to "not at this time".

 

[cove]

Westpac is a money making machine and is about to get a new board of directors. Thinking about it Westpac is currently about 20% less to buy than CBA today in equivalent financial terms. Cannot tell you where the bottom price will be but they have a much better market position than ANZ and National out of the big 4.
You will need some patience if you buy but with cash rates so low you probably will win.
OK this is not financial advice.......and I plan to take my time buying.

 

[Dr Ralph]

Westpac has now provided a share purchase plan withdrawal option.

https://www.asx.com.au/asxpdf/20191128/pdf/44c17zdvrmqbmn.pdf

 

[cove]

Yes I have 6 SPP documents in my bag and heading for Los Angeles shortly. Have not lodged those in 6 different names but thinking about it.

 

[RooFlyer]

Cannot tell you where the bottom price will be

The bottom PE would be good to know .

New CEO, bad old Board, big fines coming .... Classic for the new CEO to wield the dividend knife, blaming it in the last lot.

 

[drron]

I won't be touching any of the banks.I doubt all the litigation is out of the way for any of the Big 4.I won't be surprised to see some class action suits.
As well I really doubt that traditional banking will be as easy in the years to come.First because interest rates are going to go lower if you believe the Reserve Bank.Lower rates mean it gets harder to have a large spread between the cost of money and lending rates.It also may mean a fall in deposits taking away their low cost funding.
I am sure I am not the only one moving cash to some of the new players that now have the commonwealth governments deposit quarantee.
Then there is the loss of previous areas of profit like super and financial advice.

I sold out of Westpac in 2015 at $38.20.I missed the peak but it hasn't traded above that since.It basically has been in a downtrend since with a couple of rallys particularly in 2017.Staying in WBC would have meant a capital loss of a little over 30%.My replacements haven't been stellar but have not lost ground.

ANZ,NAB and CBA all peaked in early 2015.

 

[RooFlyer]

ASX200 just hit a record high

6879.5.

 

[cove]

Low interest rates seem to have caused the market to take off. Makes us all look like investment gurus.

 

[cove]

IMF may have a Bellamy case result tomorrow. Getting just like the US.........

 

[Dr Ralph]

Still conflicted about whether to participate in the Westpac SPP.

Safest thing is probably to sit it out.

 

[Buzzard]

This may be of interest to some:

Vanguard Index Volatility Charts

insights.vanguard.com.au