BEN - Bendigo Bank

[YELNATS]

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.

As a former holder of PMN, and therefore as result, now a holder of SUN, I personally hope it's not SUN that would be after BEN.

SUN's sp hasn't performed too well since the PMN merger. It's a pity because PMN was such a winning stock too.

Also, I would think that Aussie Post does a fair job of representing GIO insurance nationwide, at a low cost too, but that's just my opinion.

 

[YELNATS]

About 1.5 million BEN shares were traded after 4 pm closing today at about $17.30, which was around 90c better than the 4 pm closing price.

I had a sell order filled then at considerably better than my asking price, so I'm not complaining.

Looks like something is up with BEN also considering the fact that price has risen by about 29% in the last 2 weeks (based on the closing price Nov 16 to Nov 30).

Any comments anyone?

 

[So_Cynical]

Anyone want to have a guess at the bottom for BEN?

Anyone know if they have sub Prime exposure?

Julia...is it time to get back in?

 

[Happy]

From ABC, 15 Feb. 08
BENDIGO BANK ANNOUNCES $707M PROFIT

Bendigo Bank says strong loan growth has helped boost the company's first-half profit to $707 million.
The bank is the country's 11th-biggest lender by market value and says earnings have increased by more than 27 per cent in the first six months of the financial year.
Bendigo Bank bought its smaller rival Adelaide Bank last year for $1.6 billion.

I know, no institution with aim to profit should be a charity, but this announcement struck me because Bendigo Bank was heralded as people bank.

Unless profit was achieved from loans to big institutions, which I doubt.

 

[Gigabyte]

With such a large profit 707M I'd like to ask now, what's happening to the share price.

Looking at the charts its been on a slow downward trend since December 07.

I know the market is being extremely volatile but why isn't the company sustaining its share price.

Does anyone have any idea whats going on?????

Cheers
Gigabyte

 

[vishalt]

Looking at the charts its been on a slow downward trend since December 07.

I know the market is being extremely volatile but why isn't the company sustaining its share price.
Cheers
Gigabyte

Has any company no matter what they earn been sustaining their share price?

BHP with its trillion billion hasnt even, neither has CommBank

 

[shinobi346]

A couple of reasons for this, gigabyte, just looking at the company and not the market in general:

they recently went ex dividend

and they will be distributing more shares soon

some of which will be bonus shares aka freebies

 

[Prospector]

A 20% recovery today, way more than other financial shares. Does anyone have an explanation for the surge?

 

[YELNATS]

Under BEN's current share purchase plan existing holders can purchase up to 300 shares at $9.60 each.

Seems an attractive deal considering today's closing price of $11.74 with an intraday high of $12.05.

Good opportunity to pick up a cool $600-700 without too much effort.

Need to act quickly as offer closes on Monday April 21. New shares should be allotted on/about May 6.

 

[YELNATS]

BEN's share price up today to $12.87. Not a bad return for their share purchase plan (34% and no brokerage).

Sold some today to take advantage of the gain.

 

[shinobi346]

Anyone have their new shares turn up yet? Eager to know if I made it in or not.


The share is at a sweet price nice considering how much those in the SPP cost.

 

[shinobi346]

My broker called to tell me my shares came through today. It took a while because they had to check when exactly the money was transfered. He said mine was one of the last to be allocated so if you haven't got yours by now I would be asking questions.

 

[benn]

Hi could some one please advise what the closing share price of adelaide bank and bendigo bank were on scheme implementation date 30th Nov 2007


thanks very much

 

[hobo-jo]

I found it interesting that BEN dropped on the announcement of buying Macquaries $1.5b margin lending portfolio for $52m...I Would think that would be considered bargain basement buying...market didn't see it that way?

 

[prawn_86]

I found it interesting that BEN dropped on the announcement of buying Macquaries $1.5b margin lending portfolio for $52m...I Would think that would be considered bargain basement buying...market didn't see it that way?

The way i read it is that the total value of loans was 1.5b, meaning total including the margin % (the amount contributed by the bank), so it means they now have that 'liability' as such

Does that make sense

 

[hobo-jo]

The way i read it is that the total value of loans was 1.5b, meaning total including the margin % (the amount contributed by the bank), so it means they now have that 'liability' as such
Does that make sense

Yeah I understand it is a loan portfolio they are buying, but in the banking world a loan is an asset to a bank.

By my calculations if those with the margin loans are paying 3% interest, over 12 months that is $45 million, not far off the purchase price...it would seem at face value (although I imagine it is probably much more complex) that the cost of the purchase would be returned within 12-18 months...

 

[bluecheese101]

BEN's share price is deteriorating despite the upcoming ex-div date in a few days. Anyone have any ideas on why this is so?

 

[hobo-jo]

The drop doesn't seem justified. There was rumour Bendigo was going to raise an additional $100m from shareholders on the same day as the profit announcement, but I don't believe that rumour turned into fact (yet?). I don't understand what has spooked people.

 

[hardcoremike]

from a tech pov. BEN was in a trending range between $9 and $14 since feb 08. the news release came out as $9 was being tested which I think further accelerated the SP weakness.

 

[Kremmen]

The big banks have recovered quite a bit of their lost value over the past year, while Bendigo was still at $6.10 a few days ago, not much above its lowest point for the last 9 years. In the last couple of days, it's shot up, closing $6.95 today.