BEN - Bendigo Bank

[mmmmining]

Just wondering what is going on with the $1+ between hype price of BEN and reality.

Someone expecting a bad results from BOQ? I doubt it.

But I see something I don't understand.

 

[Kieran]

I have a funny feeling that Bendigo will advise shareholders not to accept the offer from BOQ - when this happens the shares will take a tumble and it'll be time to buy in again

 

[Kieran]

I cant believe no one has posted yet of the trading halt requested by BEN this afternoon?

23/04/2007
Trading in Bendigo Bank (BEN) shares was halted this afternoon at the request of the Bank.

The trading halt was obtained pending the making of an announcement to the market regarding the conditional merger proposal put to Bendigo Bank by Bank of Queensland Limited.

Bendigo Bank News Page

 

[Julia]

Bendigo Bank has rejected the BOQ offer.
BEN down 90c.

 

[Kieran]

Still expensive IMO, considering it was $13-$14 before the merger announcement.

 

[Julia]

My interpretation of BEN's letter to shareholders yesterday was not that they were looking for a higher offer from BOQ, but rather that they simply prefer the concept of going it alone. If that's the case, I guess there's a risk that the SP could revert to what it was prior to the BOQ offer.
I've sold yesterday rather than risk some of the profit.

 

[Kieran]

I have to agree Julia.

"Given the excellent prospects for Bendigo Bank on a stand-alone basis,"
"The proposal involves significant risks including integrating organisations with different business models and philosophies."

That says to me that they have given BOQ the big finger, not that that they're hanging out for a better offer (from BOQ or otherwise). I'm very surprised the share price is still sitting at $17 (down from $18 on the eve of the rejection announcement).

Personally I'm waiting for it to drop back to pre-BOQ Announcement prices so I can finally buy in. I would've bought before the announcement but the Westpac trading account took longer than I thought to setup

 

[YELNATS]

I have to agree Julia.

Personally I'm waiting for it to drop back to pre-BOQ Announcement prices so I can finally buy in. I would've bought before the announcement but the Westpac trading account took longer than I thought to setup

So what's your motivation for wanting to buy in (at a lower price)? Is it because you expect the price to eventually get back to $18 and above, in which case maybe the current price of $17 after rejection of the BOQ offer isn't too bad a reflection of BEN's future prospects and value?
Regards YN.

 

[Julia]

I have a funny feeling that Bendigo will advise shareholders not to accept the offer from BOQ - when this happens the shares will take a tumble and it'll be time to buy in again

Yes, down another 28c already today.

However, I'm curious about why you would want to "buy in again".
Looking at the one year chart the SP has virtually done nothing until the merger offer occurred.

 

[Kieran]

Julia, TBH I've only just started the sharemarket game. My parents have had Bendigo shares for a long long time and over that time they've increased in value nicely. While the performance of them over 1 year isn't anything special, over the long term they've risen in value nicely.

That said, so have most shares

 

[Julia]

Julia, TBH I've only just started the sharemarket game. My parents have had Bendigo shares for a long long time and over that time they've increased in value nicely. While the performance of them over 1 year isn't anything special, over the long term they've risen in value nicely.

That said, so have most shares

The comment that your parents have had BEN for a long time is a defining characteristic about BEN's shareholders. I think it has something to do with the "community bank" philosophy which in the minds of many people makes BEN somehow "nicer" than the big banks, maybe not so much out to fleece people with fees and charges, but rather to make a contribution to the community.

That's fine but there are much more rewarding stocks out there with more growth and/or higher yield. If you had held BEN over the last three years, growth averages only about 6% p.a., and that's including the spike from the BOQ offer. From memory the yield is under 4%.

 

[YELNATS]

... but there are much more rewarding stocks out there with more growth and/or higher yield. If you had held BEN over the last three years, growth averages only about 6% p.a., and that's including the spike from the BOQ offer. From memory the yield is under 4%.

Hi, Bendigo Bank has done pretty well since rejecting BOQ's offer. Up another 30c today to $16.56. I've held BEN since August 2001 when I bought my first of a number of parcels at $5.89. Actually I'm up 143% over the period including DRP dividends, but not including franking credits.

That's not such a shabby performance is it? regards. YN

 

[Trader Paul]

Hi folks,

BEN ... should be BOOMING over the next week or so,
from 05-12102007 and especially on 09102007 ... next
negative cycle, due on 25-26102007 ...

happy days

paul



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[vishalt]

Yeah I agree trader_paul, BEN's pretty oversold and its a good business.

I'm targetting MFS too, the fianncials & banks are starting to get some attention in this run.

 

[theasxgorilla]

My interpretation of BEN's letter to shareholders yesterday was not that they were looking for a higher offer from BOQ, but rather that they simply prefer the concept of going it alone. If that's the case, I guess there's a risk that the SP could revert to what it was prior to the BOQ offer.
I've sold yesterday rather than risk some of the profit.

Congratulations Julia on what has turned out to be insightful anticipation and a very profitable decision. Scratch up a win for good fundamental analysis .

 

[DionM]

Up 6.8% today against a backdrop of general market downturn (esp banks), and high volume. Only news is the lodgement with Feds for ADB merger which was a given.

Must be some info around that no-one else knows?

 

[YELNATS]

Up 6.8% today against a backdrop of general market downturn (esp banks), and high volume. Only news is the lodgement with Feds for ADB merger which was a given.

Must be some info around that no-one else knows?

BEN up again today for a total gain of 12.7% over last 2 days.

No other news posted except the Federal Court's approval of the merger with ADB, although BEN's Nov 16 ann indicated that ADB was merging with BBL (Brisbane Broncos? )

On a serious note, maybe there's some more good news in the wind ???

 

[DionM]

Quite a bit of accumulation going on too.

Perhaps they may be a takeover target, the potential buyer was simply waiting until ADB was approved and a done deal?

Who knows.

 

[YELNATS]

Quite a bit of accumulation going on too.

Perhaps they may be a takeover target, the potential buyer was simply waiting until ADB was approved and a done deal?

Who knows.

If so, could it be that BOQ would have another nibble at them? Maybe it was all prearranged between BEN and BOQ, that BEN would take ADB first?

 

[DionM]

If so, could it be that BOQ would have another nibble at them? Maybe it was all prearranged between BEN and BOQ, that BEN would take ADB first?

Could also be SUN, they have very little exposure in VIC and SA (1 branch per state). In a recent presentation they said they were targetting WA only (they also only have 1 branch there); but that's just what they said.

Would help them too with their insurance side of things, having more branches in there (since they have GIO for national insurance).

Could explain a bit SUN's recent SP lows as well.

But I think SUN would be too busy with Promina related stuff?

Anyway, it's all just my own musings.