# Which bank is the best value?



## mime (18 September 2006)

Hey guys.

In your opinions which of the banks listed on the asx do you think are the best value and why?


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## Ken (18 September 2006)

ANZ

no reasoning but from what i have read it offers superior growth and they have changed certain aspects of their operations to accomodate growth.

I spose it would depend on short term and long term views.


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## Realist (18 September 2006)

Commonwealth Bank.

Why?  Cause I own it (well a tiny part of it).


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## nioka (18 September 2006)

mime said:
			
		

> Hey guys.
> 
> In your opinions which of the banks listed on the asx do you think are the best value and why?



Your question needs 2 answers. The best bank to do business with is probably one of the worst to have shares in.
 A few years ago I moved to a new area. The bank I was with made a mess of the change (actually lost an account, $55,000 cash deposit mislaid ?? for 3 days) .A good bank to have shares in but a lousy one to be a customer. I couldn't even get to see the manager. I went to all the other banks in that city and ,at the counter asked to see the manager. The only bank that obliged on the spot was The Bank of Queensland. A great bank to do business with  .


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## nevieboy (18 September 2006)

mime said:
			
		

> Hey guys.
> 
> In your opinions which of the banks listed on the asx do you think are the best value and why?



HI Mime.
I have shares in 6 of the banks details are as follows:
ADB average price per share $13.10 They now are $13.30     .20cents up
ANZ      "        "      "      "    $23.52     "     "     "  $27.30      $3.78 up
BEN      "        "      "      "   $11.91     "     "     "  $14.37      $2.46 up
CBA      "        "      "      "   $41.40     "     "     "  $46.65      $5.25 up
NAB      "        "      "      "   $32.31     "     "     "  $36.94      $4.63 up
WBC     "        "      "      "   $22.10     "     "     "  $22.85       .75cents up
I bought them all in Dec 2005.
The average price includes brokers fee and dividends.Intend to keep these shares for at least another 2 years or so.


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## Freeballinginawetsuit (18 September 2006)

nevieboy said:
			
		

> HI Mime.
> I have shares in 6 of the banks details are as follows:
> ADB average price per share $13.10 They now are $13.30     .20cents up
> ANZ      "        "      "      "    $23.52     "     "     "  $27.30      $3.78 up
> ...






Classic Post, you could have bought pretty much any stock in the zinc majors or most other commodity stocks in December 05 and had 100% returns at some point in the next pursuing six months. In & out and profit made!

Your post indicates the pitfalls of the many INVESTORS who sit and hold for years in BANKS for a measly SP increase.

By the way all banks suck, better to have your money in property or shares or your own business.


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## nevieboy (19 September 2006)

Freeballinginawetsuit said:
			
		

> Classic Post, you could have bought pretty much any stock in the zinc majors or most other commodity stocks in December 05 and had 100% returns at some point in the next pursuing six months. In & out and profit made!
> 
> Your post indicates the pitfalls of the many INVESTORS who sit and hold for years in BANKS for a measly SP increase.
> 
> By the way all banks suck, better to have your money in property or shares or your own business.



Yes i realize that. I invested that money on behalf of a lady friend so i hade to make sure it was fairly safe.


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## carmo (19 September 2006)

Freeballinginawetsuit said:
			
		

> Classic Post, you could have bought pretty much any stock in the zinc majors or most other commodity stocks in December 05 and had 100% returns at some point in the next pursuing six months. In & out and profit made!
> 
> Your post indicates the pitfalls of the many INVESTORS who sit and hold for years in BANKS for a measly SP increase.
> 
> By the way all banks suck, better to have your money in property or shares or your own business.



Can you please give us your detailed trades, like Nevieboy did?


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## Julia (19 September 2006)

Freeballinginawetsuit said:
			
		

> Classic Post, you could have bought pretty much any stock in the zinc majors or most other commodity stocks in December 05 and had 100% returns at some point in the next pursuing six months. In & out and profit made!
> 
> Your post indicates the pitfalls of the many INVESTORS who sit and hold for years in BANKS for a measly SP increase.
> 
> By the way all banks suck, better to have your money in property or shares or your own business.




Your comparison of zinc stocks with banks is valid. I agree.  My zinc stock have achieved in six months what my banks have in two years.

However, the volatility of resource stocks simply doesn't suit everyone.  Sure
they have been great and could well be for a while yet, but I wouldn't be without some blue chip defensive stocks as well.

Julia


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## mime (19 September 2006)

Thanks guys.

I noticed no one has said anything about Mac bank. It's in a lull right now. I think the BEN is probably the best one. It works hard to creat good will


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## cogidubnus (19 September 2006)

mime said:
			
		

> Hey guys.
> 
> In your opinions which of the banks listed on the asx do you think are the best value and why?



CBA owes no money


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## YELNATS (19 September 2006)

nioka said:
			
		

> Your question needs 2 answers. The best bank to do business with is probably one of the worst to have shares in.




From a customer service point of view, I would say BOQ, BEN & SGB, in any order. From an investor point of view, I would saythe same answer, as unlike the majors, they understand the market power of first identifying and then surpassing their customer's expectations.


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## 3 veiws of a secret (19 September 2006)

YELNATS said:
			
		

> From a customer service point of view, I would say BOQ, BEN & SGB, in any order. From an investor point of view, I would saythe same answer, as unlike the majors, they understand the market power of first identifying and then surpassing their customer's expectations.




Stanley -I totally agree with you!


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## Julia (19 September 2006)

mime said:
			
		

> Thanks guys.
> 
> I noticed no one has said anything about Mac bank. It's in a lull right now. I think the BEN is probably the best one. It works hard to creat good will




I have BEN also, but it has done not nearly as well as WBB (Wide Bay Australia).

For the big banks, I'm a happy ANZ customer and shareholder.

Julia


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## Julia (19 September 2006)

mime said:
			
		

> Thanks guys.
> 
> I noticed no one has said anything about Mac bank. It's in a lull right now. I think the BEN is probably the best one. It works hard to creat good will




I have BEN also, but have had better results from WBB (Wide Bay Australia).
For the big banks, I'm a happy ANZ customer and shareholder.

Julia


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## Freeballinginawetsuit (19 September 2006)

carmo said:
			
		

> Can you please give us your detailed trades, like Nevieboy did?




I cant give you a detailed list of my trades, I trade pretty much every day and have been for the last 3 years, there would be many hundreds.

In relation to some Zinc ones I have traded a particular few probably 30 or 40 times each since dec 05. I have traded them short at 15%, held a percentage of my parcels long and had trailing stops on the long parcels which have been hit on pretty much every first day of the March, May, June, and Sept corrections. I have hit these same stocks on the third day of the aforementioned corrections. Its been quite a simple trading plan as long as the stocks are sound fundamentaly. I breakout trade anything on T/A also, as long as it has volume and is worth more than 10 cents. Their my only rules.

Personally I don't trade banks or staple stocks, I'm not an INVESTOR, they have crap SP returns and present few opportunities for TRADERS.   

KZL & ZFX alone have returned me at least 300% profits in the last 6 months on my trades, this is to name a few.
Ive traded MRE,SBM,PDN,BPT,ROC,SMY,BSG and many others also since DEC, over and over.

Some people on this this forum associate commodity stocks with inherent risks. Sure thats true, but in the end a fundamental stock is as good as its earnings.Take ZFX for example, 6 months ago its SP was 4$ odd, company cap was approx 2.5 billion. It was not hard to predict ZFX would make a Billion this year. Hence at a $4 SP its profits were half its market cap, absolutely not hard to foresee that the SP would go North (way north). This is just one point in example, KZL,MRE,SMY and many others are juniors that are ramping up and should produce some astonishing profits this year.


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## mime (20 September 2006)

Commdities stocks are good. I've done ok out of them(I wish I sold out prior to the mini crash) but I'm thinking of trying something new. Does anyone else consider the s.p of banks very predictable?


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## Freeballinginawetsuit (20 September 2006)

mime said:
			
		

> Commdities stocks are good. I've done ok out of them(I wish I sold out prior to the mini crash) but I'm thinking of trying something new. Does anyone else consider the s.p of banks very predictable?




Look at the their charts, the SP over the long term returns as much as handing over your cash to the teller at the bank, bugger all!.

The major Banks are a pretty safe investment though, probably one of the safest on the ASX.


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## carmo (20 September 2006)

Freeballinginawetsuit said:
			
		

> I cant give you a detailed list of my trades, I trade pretty much every day and have been for the last 3 years, there would be many hundreds.
> 
> In relation to some Zinc ones I have traded a particular few probably 30 or 40 times each since dec 05. I have traded them short at 15%, held a percentage of my parcels long and had trailing stops on the long parcels which have been hit on pretty much every first day of the March, May, June, and Sept corrections. I have hit these same stocks on the third day of the aforementioned corrections. Its been quite a simple trading plan as long as the stocks are sound fundamentaly. I breakout trade anything on T/A also, as long as it has volume and is worth more than 10 cents. Their my only rules.
> 
> ...



Fair point, I am probably 80% INVESTOR AND 20% TRADER. I guess you just have to be comfortable with what you are doing.


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## swingstar (20 September 2006)

From a technical perspective, I'm quite bearish on banks short-term. ANZ is now showing similar characteristics as WBC did before it started to tank.  

I'm not too keen on CBA either. And NAB as well. These are all setting up for some spectacular falls IMO.


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## tahpot (20 September 2006)

I see mining stocks to be a much better, and more stable investment over the next 2 years than banks. The mining boom in Australia isn't going to just "disappear", but there is uncertainty in the overall global market place due to Oil etc. which the banks are more exposed to.


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## Ko Ko (20 September 2006)

I think banks are relatively safe. Over the last couples of months watching banks i only see them falling no more than 1 percent on a day and gaining that 1 percent the next day. Im holding resources at the moment but probably not contributing anymore to it.
I bought some WBC yesterday at 22.60. So we will see how it goes.
I am looking at MIG and SRG at the moment as future runners.


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## Freeballinginawetsuit (20 September 2006)

tahpot said:
			
		

> I see mining stocks to be a much better, and more stable investment over the next 2 years than banks. The mining boom in Australia isn't going to just "disappear", but there is uncertainty in the overall global market place due to Oil etc. which the banks are more exposed to.





Do you really believe Mining stocks are more stable than bank stocks?. Come on!.

There's more SP returns (or losses), in the miners, but its definitely a more volitile market than the banks!.


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## Freeballinginawetsuit (20 September 2006)

Ko Ko said:
			
		

> I think banks are relatively safe. Over the last couples of months watching banks i only see them falling no more than 1 percent on a day and gaining that 1 percent the next day. Im holding resources at the moment but probably not contributing anymore to it.
> I bought some WBC yesterday at 22.60. So we will see how it goes.
> I am looking at MIG and SRG at the moment as future runners.




Perhaps if they only go down 1 percent and then up 1 percent, they may be a waste of time trading, Tweedle de tweedle dum!


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## PennyHopeful (21 September 2006)

There is a write up in the latest money mag listing ANZ as a buy. refer to page 126 for analysis and justification. i hold BOQ and am considering taking a position in ANZ. my portfolio is overweight in resource stocks but even though i know the negativity on resources and that diversification is the key i think they all have potential so its tough to sell.


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## swingstar (21 September 2006)

PennyHopeful said:
			
		

> There is a write up in the latest money mag listing ANZ as a buy. refer to page 126 for analysis and justification. i hold BOQ and am considering taking a position in ANZ. my portfolio is overweight in resource stocks but even though i know the negativity on resources and that diversification is the key i think they all have potential so its tough to sell.




Money mag said TEN was a buy earlier in the year.


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## Freeballinginawetsuit (21 September 2006)

PennyHopeful said:
			
		

> There is a write up in the latest money mag listing ANZ as a buy. refer to page 126 for analysis and justification. i hold BOQ and am considering taking a position in ANZ. my portfolio is overweight in resource stocks but even though i know the negativity on resources and that diversification is the key i think they all have potential so its tough to sell.




You will struggle to find a bank stock to buy for a penny, pennyhopeful!.


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## PennyHopeful (21 September 2006)

i dont consider any resource my bible and money mag is no exception... just another resource.. as for my name... on my birth cert it dosnt say hopeful but my nick has my name in it???????????? cryptic i know...  starting to regret i tnow though


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## happytrader (21 September 2006)

mime said:
			
		

> Commdities stocks are good. I've done ok out of them(I wish I sold out prior to the mini crash) but I'm thinking of trying something new. Does anyone else consider the s.p of banks very predictable?




If you take a look at the stock charts on various time frames over the last 10 years of so you will be able to answer this question yourself. You will also be able to see when they are in season.

Cheers
Happytrader


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## slydog (26 September 2006)

well i sold my ANZ a few months ago and bought westpac as the NZ economy was supposed to be slowing down and westpac had more exposure to the financial planning market
cant remember the dates i bought but rough gains on my other bank stocks,
NAB $7
SGB $8


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