Anyone buying banks yet?

UMike · 7 September 2022

If Westpac go under $20 I am buying again.
Not 'cause it is sound advice but I sense the BS meter is On the Oversold Dial.

Also looking at JDO as a Falling Knife scenario. Put a buy order in already at $1.095. Had enough of these under valued environments. Still can't get a builder to make my garage. Money is being spent like there is no tomorrow.

peter2 · 7 September 2022

UMike said:
If Westpac go under $20

Shouldn't be long for this to happen.

JDO: I looked at it recently for a possible reversal setup. Business lender with no home loans - should be a goer. It seems the market doesn't like it as price is drifting lower. JDO like the rest of the ASX isn't ready to be bought yet (for me).

frugal.rock · 15 September 2022

Looking at BEN.
Sitting near a 52 week low. ?
Has gone ex dividend recently.
Looking like a decent lower entry price setup for a longer term compounding style investment, imo.

KevinBB · 15 September 2022

frugal.rock said:
Looking at BEN.
Sitting near a 52 week low. ?
Has gone ex dividend recently.
Looking like a decent lower entry price setup for a longer term compounding style investment, imo.

View attachment 146865

unless, of course, it breaks through that lower support level, and heads towards $6

KH

frugal.rock · 16 September 2022

frugal.rock said:
Looking at BEN.
Sitting near a 52 week low. ?
Has gone ex dividend recently.
Looking like a decent lower entry price setup for a longer term compounding style investment, imo.

KevinBB said:
unless, of course, it breaks through that lower support level, and heads towards $6

KH

I can't see it doing that.
Yesty was a good day for banks in general, not so great for BEN, but it was positive.
It is bouncing off a 52 week low after going ex dividend, so it won't happen overnight, although is up 1% as I write...

InsvestoBoy · 23 September 2022

*me right now*

Is a steeper yield curve good news for banks? A challenge to the conventional wisdom

Oliver Brenman, Frank Eich, and Jumana Saleheen The conventional wisdom amongst financial market observers, academics, and journalists is that a steeper yield curve should be good news for bank pro…

bankunderground.co.uk

KevinBB · 23 September 2022

InsvestoBoy said:
*me right now*

Yes, me in small quantities, too. On Wednesday I replaced some IOZ with ANZ, a straight swap. I'll do the same with NAB early next week.

My reason is a little different: its dividend time ... just a little more than 45 days before ANZ and NAB go ex div.

KH

InsvestoBoy · 23 September 2022

KevinBB said:
Yes, me in small quantities, too. On Wednesday I replaced some IOZ with ANZ, a straight swap. I'll do the same with NAB early next week.

My reason is a little different: its dividend time ... just a little more than 45 days before ANZ and NAB go ex div.

KH

oops, sorry, I didn't mean to imply I am buying banks now, was just trying to depict my current thoughts "right now"

peter2 · 23 September 2022

I am. Bought 1/4 position in MQG today. Will buy another parcel further down and will then wait for rising prices to add final 1/2.

I'm waiting to start a similar tactic in CBA at $90. BHP at $35. WDS at $30. GEAR at $19. Plus a few others in current dip.
For conservative medium term (1-3yr) outlook portfolio. Aim is to earn more than term deposit rates (>4%pa).

KevinBB · 23 September 2022

InsvestoBoy said:
oops, sorry, I didn't mean to imply I am buying banks now, was just trying to depict my current thoughts "right now"

Just like any business, it is always a good time to buy when margins are rising strongly. Fuel retail is another dog in the same kennel, or at least it was a couple of months ago.

KH

divs4ever · 23 September 2022

i probably should have bought extra KSL today ... but was busy trying to cherry-pick the REITs (

have an order in for extra BOQ , but didn't really get close there

i need more down for most of the banks ( i hold )

i should probably calculate a target price for extra VUK over the weekend , as well

InsvestoBoy · 23 September 2022

divs4ever said:
i should probably calculate a target price for extra VUK over the weekend , as well

you ever gonna tell us how you come up with those targets?

divs4ever · 23 September 2022

well first i use a little bit of greed ( it will NEVER come down to THAT price .. but sometimes i am delightfully wrong )

then a double-check the value using historical divs and then forecast divs ( neither are reliable guides , but this game is all about risk V. reward , no potential reward , i move on )

then go through the boring stuff P/E , and D/E , look to see if there is a chance of future earnings growth etc etc

with VUK i have to weigh up the chances the UK government will nationalize the bank ( the City of London despise Branson )

UMike · 14 October 2022

WBC up 8% this week. Anyone see that coming?

UMike · 16 February 2023

Even if we have an economic downturn I still don't think it will be a financial crisis.

Yet CBA leading a 6% odd sell of.

dyna · 16 February 2023

UMike said:
WBC up 8% this week. Anyone see that coming?

Perpetual is one Insto that's been saying for a while now, that WBC is their pick out of the big 4.

mullokintyre · 16 February 2023

Phil Lowe, perhaps in a bit of an attempt to deflect attention from the RBA's rather poor record on economic forecasting, has tipped a bucket on the OZ banks.
Fromthe Australian

Reserve Bank governor Philip Lowe says banks have been slow in passing on higher interest rates to savers, as the sector faces a new probe over why rates have not moved up as quickly for savers as mortgage holders.
While the big four banks vowed to co-operate fully with the Australian Competition and Consumer Commission inquiry, which will report to government by December 1, Commonwealth Bank of Australia chief executive Matt Comyn conceded there were “far fewer promotional or introductory rates” for deposit accounts than in the past.

Jim Chalmers said the ACCC inquiry would “shine a light on the dynamics of the retail deposit market”, noting Australian households held more than $1.3 trillion in savings and deposit accounts.
“Australians should see the benefit of higher interest rates flow through to their savings accounts – it should be the silver lining when rates increase,” the Treasurer said.

“It’s a fact that banks have been a lot slower to pass on the increases in interest rates to savers than to mortgagees.”

Dr Lowe told Senate estimates that increasing interest rates had an “immediate effect” of boosting banks’ profits, “particularly if they’re slow in raising deposit rates, which they have been”.

One might look at this from two perspectives.
Firstly, the banks become more attractive as they increase profits.
Hence they maintain their buying attraction.
on the other hand, with the Government now involved, they will need to be seen to "doing something".
maybe a little bit of pushing by JIm, or mild threats about penalties etc.
Putting banks on a leash upsets a very small contingent of the great unwashed, so its seen as politically safe.
The latter scenario may take some of the gloss of bank share buying.
Mick

Garpal Gumnut · 16 February 2023

dyna said:
Perpetual is one Insto that's been saying for a while now, that WBC is their pick out of the big 4.

@dyna I am convinced that when the media approach outfits like Perpetual or Challenger for an opinion on which of the four banks is the pick of the four they do the following.

Bring out four cards face down with the names of the big 4 on them and get the cleaning lady to pick a card.

If WBC is the blinded card that the cleaning lady picks they then tell the media that WBC is the one to go for.

They then set an algorithm titled WBC Sue-Lin's Pick which spews out a lot of nonsense figures to justify their pick.

Same if they are asked the following week, only algorithm might be called CBA Sue-Lin's Pick.

gg

mullokintyre · 16 February 2023

Garpal Gumnut said:
@dyna I am convinced that when the media approach outfits like Perpetual or Challenger for an opinion on which of the four banks is the pick of the four they do the following.

Bring out four cards face down with the names of the big 4 on them and get the cleaning lady to pick a card.

If WBC is the blinded card that the cleaning lady picks they then tell the media that WBC is the one to go for.

They then set an algorithm titled WBC Sue-Lin's Pick which spews out a lot of nonsense figures to justify their pick.

I think they talk to ChatGPT.
Mick

UMike · 2 March 2023

Both ANZ and NAB are below my buy the dip target.
Letting the wife decide which one since it'll be her acc.

Still a watch and see before any plunge is taken.

Anyone buying banks yet?

UMike

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frugal.rock

KevinBB

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InsvestoBoy

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