CBA - Commonwealth Bank of Australia

[Dona Ferentes]

CBA has come off a bit following its stellar run. Although, when I overlaid the Financial Index, I saw that most boats lifted with the tide, up 13-14% in the 6 months. CBA seemed to have done its run a little bit earlier.

nice to see the dip was short term and $120 has been revisited

The other 3 big banks announce soon as their reporting cycle is different. Maybe some insights will be gathered.

nothing threatening there. Onward

 

[Value Collector]

I don't follow CBA, I had them a long time ago, but sold out when they were at multiple times the value of NAB, WBC and ANZ, so jumped ship for increased dividend with similar risk.
Everyone to their own, capital value wise I'm not sure I've done better, but dividend wise I think I have and dividend is what I'm after.

Check out how much money CBA makes from housing and how much it makes from business, then check out the others and compare their results eg earnings per share, dividends per share and it should give you a warm feeling in the tummy, or a not so warm feeling.
They are a great bank, how great is up to you.
I do hold ANZ, NAB and WBC
I personally doubt any of the big 4 are a risk, but never say never, we are entering testing times, luckily the Govt has more pull on the super funds than the banks IMO.
Another question to ask IMO, is why does CBA command such a price premium over the other major banks, I think it is a great question to throw around.

I did a full valuation of CBA about couple of months ago, and if I pushed my value metrics to their limit, based I what I require as my absolute lowest base return in dividends and likely capital growth over time, I could push the fair value out to $125 per share for CBA.

But, that does require basically nothing to go wrong and for their system to keep chugging away and for them to continue to be able to deploy the retained earnings at good returns on equity, and obviously being the scrappy value seeking investor I am, I would prefer to buy them at a discount to this $125 Maximum value I estimated.

So, I haven't purchased any recently, but I did sell some puts against them, all my previous puts had been around the $100 level, But I have raised the strike price on 40% of the puts I have sold to $112 and $116, I still have a few puts at $100 when they expire I will consider raising them a little higher too.

But yeah, basically I consider $125 to the highest price you could pay to have a chance of receiving an ok return on them as a long term hold (5 years +) , obviously the lower you can buy it the better though.

 

[Dona Ferentes]

last week saw CBA hit $122.50, an all-time high. Tried a few times ....

 

[Dona Ferentes]

nothing going wrong here... doomsayers might be squrming?

CBA was as high $125.97 earlier on in the day

 

[Chipp]

Be a rare thing for CBA to put on 5% in first week of June i think , will run a code later to see .

 

[Value Collector]

I did a full valuation of CBA about couple of months ago, and if I pushed my value metrics to their limit, based I what I require as my absolute lowest base return in dividends and likely capital growth over time, I could push the fair value out to $125 per share for CBA.

But, that does require basically nothing to go wrong and for their system to keep chugging away and for them to continue to be able to deploy the retained earnings at good returns on equity, and obviously being the scrappy value seeking investor I am, I would prefer to buy them at a discount to this $125 Maximum value I estimated.

So, I haven't purchased any recently, but I did sell some puts against them, all my previous puts had been around the $100 level, But I have raised the strike price on 40% of the puts I have sold to $112 and $116, I still have a few puts at $100 when they expire I will consider raising them a little higher too.

But yeah, basically I consider $125 to the highest price you could pay to have a chance of receiving an ok return on them as a long term hold (5 years +) , obviously the lower you can buy it the better though.

Given my valuation above, and that the stock is now over $125 I am wondering how effective their buybacks will be in building share holder value. It was a no brainer at $100 to buy back shares, but will they keep buying back at $125 or $130?

 

[Sean K]

Crikey, hit $128.68. My Dad bought these in the float and has been doing well in retirement using the dividends to feed the pokies. Doesn't want to sell them so I guess I'll be paying tax on them one day...

 

[divs4ever]

Crikey, hit $128.68. My Dad bought these in the float and has been doing well in retirement using the dividends to feed the pokies. Doesn't want to sell them so I guess I'll be paying tax on them one day...

View attachment 179285

could be worse , he might have bought a swag of TLS

 

[Sean K]

could be worse , he might have bought a swag of TLS

Did that too unfortunately, as I did. :-(

 

[divs4ever]

was years away from the investing adventure for both floats , sometimes late to the party isn't so bad

 

[farmerge]

Crikey, hit $128.68. My Dad bought these in the float and has been doing well in retirement using the dividends to feed the pokies. Doesn't want to sell them so I guess I'll be paying tax on them one day...

View attachment 179285

@Sean K Long may your Dad live and enjoy the fruits of his investment.

 

[Garpal Gumnut]

@debtfree CBA continues to advance despite the recommendations from brokers to sell.

I see no reason to doubt it will fly further. It is good value at these prices considering the divi. A move to higher interest rates may cause it some problems. I will buy more on weakness in the sp.

One of my picks in the 2024 Competition.

gg

 

[Dona Ferentes]

CBA continues to advance despite the recommendations from brokers to sell.

ain't that sweet
.
CBA exceeds BHP's market capitalisation for the first time on record. CBA is now valued at about $220.11bn. BHP is now about $219.57bn.

CBA hit a record high of $131.70 and BHP hit an eight-day low of $43.10 Friday

 

[Garpal Gumnut]

CBA continues its upwards trajectory.

By far one of the better, if not the best performer of the sell off of Commonwealth assets to the public.



One of my picks in the 2024 Competition @debtfree

gg

 

[Dona Ferentes]

CBA - By far one of the better, if not the best performer of the sell off of Commonwealth assets to the public.

sliding past CSL ?
Risk profiles somewhat different; and both have been great, and LT holds for many .

 

[Dona Ferentes]

CBA continues its upward trajectory.

another run higher, an ATH of $135.72 today*, when the general market has retreated somewhat.

Geoff Freeman, CEO of AFI, ponders what to do - the LIC holds $1 billion of CBA shares:

With CBA on a price-to-earnings ratio of 24, and with analysts predicting next to no growth in earnings in the next four years, Freeman says investors are essentially betting on a further re-rating for the stock to get a return

.
*make that $135.90

 

[qldfrog]

another run higher, an ATH of $135.72 today*, when the general market has retreated somewhat.

Geoff Freeman, CEO of AFI, ponders what to do - the LIC holds $1 billion of CBA shares:

.
*make that $135.90

When the property settled, i needed to change the transfer limit with CBA.
Only one way, call the helpdesk
.i called from 4pm to 7:30pm yesterday
I got hang up 4 times after 29 to 30 minutes, "we are too busy to take you call, call again later"
Went to one of the remaining agency, get an appointment, 1h later, which was then 15min late....waaas livid
That's the way a client with 7 figures credit on its account gets treated ..
Cba has been my central key bank for 30 years, after the last 2 days, i am looking at switching .
And this experience means avoiding shares fir me, especially at the current heights

 

[divs4ever]

When the property settled, i needed to change the transfer limit with CBA.
Only one way, call the helpdesk
.i called from 4pm to 7:30pm yesterday
I got hang up 4 times after 29 to 30 minutes, "we are too busy to take you call, call again later"
Went to one of the remaining agency, get an appointment, 1h later, which was then 15min late....waaas livid
That's the way a client with 7 figures credit on its account gets treated ..
Cba has been my central key bank for 30 years, after the last 2 days, i am looking at switching .
And this experience means avoiding shares fir me, especially at the current heights

OOPS !

i could have warned you about that after my purchase last year ( when the funds needed to be funneled through them from various sources )

there is a reason why CBA is not my major bank and it dates back to 2011

 

[mullokintyre]

When the property settled, i needed to change the transfer limit with CBA.
Only one way, call the helpdesk
.i called from 4pm to 7:30pm yesterday
I got hang up 4 times after 29 to 30 minutes, "we are too busy to take you call, call again later"
Went to one of the remaining agency, get an appointment, 1h later, which was then 15min late....waaas livid
That's the way a client with 7 figures credit on its account gets treated ..
Cba has been my central key bank for 30 years, after the last 2 days, i am looking at switching .
And this experience means avoiding shares fir me, especially at the current heights

Yo Le Frog, I have this great investment scheme in Nigeria, guaranteed to get 20%.
let me know if you are interested.
mick

 

[farmerge]

Yo Le Frog, I have this great investment scheme in Nigeria, guaranteed to get 20%.
let me know if you are interested.
mick

Mr frog no need to go to Nigeria when there are plenty of shonks here in Oz.