Anyone buying banks yet?

[divs4ever]

in the current scenario , i see the rush to buy-backs as a desperate attempt to buy-out hostile share-holders

( i hold a small number of WBC because i dumped them ex. div )

i had previously exited ANZ completely

what i will enjoy watching is

the big institutional investors ( and fund managers ) happily lend out the share-holding to short-sellers ( and other 'activists )

if you think i am crazy watch for them to start issuing convertible debt/hybrids in the coming year ( guessing the easy credit to them will dry up )

cheers

 

[sptrawler]

I'm interested to see, how this property boom, translates onto the banks bottom lines.

 

[Dona Ferentes]

Anyone buying banks yet?​

On top of its $3.5 billion dividend, CBA will also start a $6 billion off-market buyback supported by $2.1 billion in franking credits.

Buybacks announced in the past few weeks include a $2.5 billion repurchase for NAB and a $1.5 billion buyback for ANZ, both announced last month.

As well as a hefty dividend, Suncorp will buy back up to $250 million of shares from the market, which reduces dilution among investors.

And Westpac said; given excess capital and franking credits, the Board will consider a return of capital, with an update expected at our FY21 results

 

[frugal.rock]

Solid gap down from Westpac today I guess from share buy back announcement?
I don't have any experience with buy backs, do an wondering why the market decided to react as it has...

Might be a buy the dip opportunity, or not?

 

[sptrawler]

Solid gap down from Westpac today I guess from share buy back announcement?
I don't have any experience with buy backs, do an wondering why the market decided to react as it has...
Might be a buy the dip opportunity, or not?

Maybe the punters expected a special dividend, or a return of capital?
Let's be honest, WBC management hasn't done much for the long term shareholder in the last 10 years.



As opposed to CBA, they are both in the same business, they should track each other, if they were performing the same.

 

[peter2]

Rising costs and mgt stuff ups that have cost heaps are to blame.

 

[mullokintyre]

Just can't bring myself to buy banks.
For me its like buying shares in tobacco Companies.
Mick

 

[peter2]

Disappointing but true.

 

[mullokintyre]

Its the doctors.
I remember an ad on the back of the readers digest that said 3 out of 5 Doctors recommend camel cigarettes.
Mick

 

[sptrawler]

Rising costs and mgt stuff ups that have cost heaps are to blame.

Yes Westpac actually prove disclaimers are correct.

"Historical performance shouldn't be taken as a guide to future performance".

In WBC case, they seem to continually prove it to be true.

I do hold, but have done for a long, long time.

 

[divs4ever]

Australia's Westpac to return $4.3 billion to investors, shares plunge on margin hit

Australia's Westpac takes hit to margins, shares tumble despite buyback By Reuters

Australia's Westpac takes hit to margins, shares tumble despite buyback

www.investing.com

DYOR

( i hold a small number of WBC )

have no intention of buying the big 4 directly ( in the near future )

but MIGHT look at adding ( or buying into ) a bank/XFJ focused ETF if an attractive price comes along

MQG is my largest holding and i hold most of the second tier banks ( listed on the ASX )

i agree with mullokintyre some have damaged their brand too badly for me , the SP would have to plummet ( say in a market meltdown ) to tempt me again

i have held ANZ in the past still hold a trivial amount of WBC

BUT i expect many retail investors will disagree with me as we approach Xmas , as they search for comparatively safe returns

 

[peter2]

Currently my trading performance indicates that I can reverse gravity. Buying WBC today is a test.

 

[frugal.rock]

Buying WBC today is a test.

Does that mean you have bought Mr P2 ?

 

[peter2]

Bought at 24.10 and if price closes near 25 I'll consider I'm omnipotent, ie. "Legend in my own lunchtime".

 

[frugal.rock]

I've had a nibble too...?
Have been considering that banks in general should see a good year or 3 from here, with inflation on the simmer and rates expected to increase.
Couple that with the buyback which could indicate higher dividends going forward.
The scenario seems to be the opposite of a dilution scenario.
I note, most banks down today and it looks like WBC is going to see the biggest volume day in a long long time.

 

[KevinBB]

Yes, I bought some, too. 380. Solely for the buy back. They will be gone by Christmas when the buy back is complete.
KH

 

[debtfree]

Bought at 24.10 and if price closes near 25 I'll consider I'm omnipotent, ie. "Legend in my own lunchtime".

You're really getting into this Dr Fly thing @peter2

 

[frugal.rock]

Yes, I bought some, too. 380. Solely for the buy back. They will be gone by Christmas when the buy back is complete.
KH

What are your thoughts around the buyback Kev?
Why would you not hold longer than Christmas?

 

[KevinBB]

What are your thoughts around the buyback Kev?
Why would you not hold longer than Christmas?

I am a believer in selling when the reason for purchase is gone.

The reason for purchase of these WBC is solely to collect the franking credits available in this off market buy back. I bought 380, which is very likely to be the amount at where WBC will buy 100% of the shareholding, and I will offer them all. Edit: the buy back should be complete by Christmas.

As an aside, I started running two stock systems earlier last month, in addition to my futures system. So, I am trying as much as possible to stick with the systems, and hold what the systems tell me, but also having a little bit of cash available for these one-off opportunities.

Next, hopefully will be BHP. Going from memory, BHP and RIO haven't had a really good off-market buy back for a couple of years, now, I expect one of them to be next cab off the rank to give surplus franking credits to shareholders. BHP has a history of doing these, so I'm passively waiting ...

KH

 

[sptrawler]

@KevinBB do you have any info on the buyback conditions, or a link? Cheers