CBA - Commonwealth Bank of Australia

[Value Hunter]

others just seem to be buying

on a flat day, CBA went up, closing at high

View attachment 189084

CBA is the largest stock in Australia therefore it gets the most passive index/ETF inflows into it due to the ETFs mostly being market cap weighted. This creates a circular effect.

The CBA price goes up due to passive ETFs buying because its the biggest stock, this then pushes the share price even higher which then pushes up its index weighting which then causes the index funds to buy even more.

This will continue until it gets so overpriced that all the non passive investors start selling to take profits and overwhelm the passive buying pushing the price down.

 

[qldfrog]

CBA is the largest stock in Australia therefore it gets the most passive index/ETF inflows into it due to the ETFs mostly being market cap weighted. This creates a circular effect.

The CBA price goes up due to passive ETFs buying because its the biggest stock, this then pushes the share price even higher which then pushes up its index weighting which then causes the index funds to buy even more.

This will continue until it gets so overpriced that all the non passive investors start selling to take profits and overwhelm the passive buying pushing the price down.

and then the circular action becomes a negative force...
The impact of ETF in 2024 does not seem to register on many, some still want to do 15y or more backtest to test strategies for example;
What you mention above is another reason why: while the fear and gredd stay the same, this time it is different..
Ultimately, in the course of history, same same, but for the investor/trader limited to what 40y investing, the difference is huge;
CBA the poster boy in our case!
I forgot mentioning super, the stealth steal on the whole nation, pushing even more money every month in this system, heroin addicted like..

 

[Value Hunter]

and then the circular action becomes a negative force..

Indeed once the negative feedback loop finally kicks in it will be savage, expect a 30% drop in CBA shares within a 12 months period.

If CBA had a clever board of directors (they don't) they would shore up their balance sheet with a large capital raising while the share price is in the stratosphere. They can then use the excess capital to buy back shares at a lower price in the future when the stock comes back to a normal valuation.

Alternatively they could issue shares to take over a smaller bank for example Judo Capital Holdings which is listed on the ASX has a market cap of just over $2 billion and trades on a price to book ratio of around 1.4 while CBA trades on a price to book ratio of 3.6 times so its an easy arbitrage opportunity. Or for example Bendigo and Adelaide Bank trades on a price to book ratio of around 1.1 and has a market cap of around $7.6 billion. Another easy arbitrage for CBA if they do a scrip for scrip takeover or do a capital raising then make a cash takeover.

 

[qldfrog]

as a CBA customer, the last drop was yesterday:
I received some investment back from a money lender I deal with and have dealt for a while:
a risky but risk managed investment as some may be aware here
I then wanted to reinvest that capital back.
Back from where the same amount was credited the day before
Transfer limit (max I can do alone on netbank) was 20k a day.
When I went to netbank the previously existing option which was connecting you to an operator had disappeared
(within the last 2 months);
I then directly called the bank help desk, was transferred to the right service then was asked..what was it for?..was then told was a questionable transfer so was passed on a second security specialist (all in the indian subcontinent and paid 20k a year but able to do what they want with my assets)
That one still denied me access to the increase and forwarded me to a 4th phone waiting line;
obviously every call and jump includes a 10 to 20min wait with easing soft musical jingles
I gave up.
moved 2x 20k via wife etc account, and completed the rest thru HSBC
Decision is final, I am out from CBA , 12 different accounts with my various entities etc, and will slowly drain then close all accounts in the coming 6 months
Just beware if you deal with CBA.
Obviously I would not invest a cent there

 

[Value Collector]

Transfer limit (max I can do alone on netbank) was 20k a day.

Come on mate, its not that hard, You can adjust that limit to what ever you want,

In netbank,
1. Click "settings"
2. Click "Transfer and Bpay daily limits" under the online limits heading
3. Select the amount you want up to $100,000

for amounts above $100,000 call and have them adjust it over the phone, they can do amounts up to $999,999,999 over the phone, and give you the option to change it for just that day or permanently.

 

[Value Collector]

Indeed once the negative feedback loop finally kicks in it will be savage, expect a 30% drop in CBA shares within a 12 months period.

If CBA had a clever board of directors (they don't) they would shore up their balance sheet with a large capital raising while the share price is in the stratosphere. They can then use the excess capital to buy back shares at a lower price in the future when the stock comes back to a normal valuation.

so they need the capital though?

 

[divs4ever]

Come on mate, its not that hard, You can adjust that limit to what ever you want,

In netbank,
1. Click "settings"
2. Click "Transfer and Bpay daily limits" under the online limits heading
3. Select the amount you want up to $100,000

for amounts above $100,000 call and have them adjust it over the phone, they can do amounts up to $999,999,999 over the phone, and give you the option to change it for just that day or permanently.

not here , that 'simple phone call ' was not so simple .. and that was just to raise the limit to $20,000 ( which i never changed back .. just reduced the usual balance to under $100 )

but they were already on my AVOID list ( as a direct share-holding ) so maybe they sensed an underlying hostility ( which has been smoldering for over ten years )

 

[qldfrog]

Come on mate, its not that hard, You can adjust that limit to what ever you want,

In netbank,
1. Click "settings"
2. Click "Transfer and Bpay daily limits" under the online limits heading
3. Select the amount you want up to $100,000

for amounts above $100,000 call and have them adjust it over the phone, they can do amounts up to $999,999,999 over the phone, and give you the option to change it for just that day or permanently.

you are such a genius, no you cannot, FFS, I have been a customer for 30y and never used to put a foot in a branch.
I have been thru that process dozen of times and used to be a a premium customer too
Who do you really take people for?
BPAY limit might still be able to be increase to 100k, but was not interested in BPay but EFT

 

[qldfrog]

Just because some people can not even believe facts:
20k max, please note the usual text asking to call them to request higher limit is gone, but it is still accessible, except they decide if you are allowed to have access to your own money
snapshot taken 2 minutes ago.

this is enough for me not to invest in that bank, on pure ethics et definitively not be a sucker of a customer.
All comsec portfolio sold this morning

 

[Value Collector]

you are such a genius, no you cannot, FFS, I have been a customer for 30y and never used to put a foot in a branch.
I have been thru that process dozen of times and used to be a a premium customer too
Who do you really take people for?
BPAY limit might still be able to be increase to 100k, but was not interested in BPay but EFT

Dude I literally changed mine right before wrote the instructions for you, so it definitely works, are you trying to use the app or the actual Netbank website, because this is the Netbank website.

You can see In the photo I have mine set to $100,000 and when I click the drop down box I can change it to many options.

 

[Value Collector]

Just because some people can not even believe facts:
20k max, please note the usual text asking to call them to request higher limit is gone, but it is still accessible, except they decide if you are allowed to have access to your own money
snapshot taken 2 minutes ago.
View attachment 189599
this is enough for me not to invest in that bank, on pure ethics et definitively not be a sucker of a customer.
All comsec portfolio sold this morning

As you can see above mine goes up to $100,000 so just call the bank, maybe the first time you raise it you need to do it over the phone or something.

 

[Value Collector]

this is enough for me not to invest in that bank, on pure ethics et definitively not be a sucker of a customer.
All comsec portfolio sold this morning

As I showed you can raise it to $100,000 but it must just be the first time that you have to call or something, also as I have said over the phone it can be raised up to $999 Million.

 

[Dona Ferentes]

a new ATH this morning ... $161.10

 

[farmerge]

a new ATH this morning ... $161.10
View attachment 189657

For those holding a gold mine. For me not a holder
But it is a financial institution that I loathe and we will be banking with them shortly due to the takeover and closure of BankWest.

 

[dyna]

you can raise it to $100,000 but it must just be the first time that you have to call or something

I set mine at that amount ages ago too , and did it online . Easy . No probs !

CBA ( and commsuck ) are no better , no worse than everybody else , I reacon . There are cheaper outfits to deal with , for sure but I'm too lazy to change now . I'm too busy turning a buck and I like the convenience , anyway .
Go the banks !

 

[qldfrog]

Btw following various discussions about shorting CBA
i managed to get a put on cba for July at $156 paid 6.30 after fees etc
That was earlier this week when cba was at ath.
Currently around 151 so not far from being in the money.
Time will tell.
Just bought 3 of these so not gambling the house there: going against @peter2 is a near sure way to lose

 

[rolly1]

Btw following various discussions about shorting CBA
i managed to get a put on cba for July at $156 paid 6.30 after fees etc
That was earlier this week when cba was at ath.
Currently around 151 so not far from being in the money.
Time will tell.
Just bought 3 of these so not gambling the house there: going against @peter2 is a near sure way to lose

Maybe spreading it off at $145 to lower your cost basis while the premiums are juiced. Major support level there. Imho

 

[qldfrog]

Maybe spreading it off at $145 to lower your cost basis while the premiums are juiced. Major support level there. Imho

Probably
Was more an exercise, ideally would do the put years away, cover my back with some shares but i pay horrendous fees on options here so i kind of give up asx options
Less than $2k in play.
Will see how it goes, there is a lot against being bear CBA in Australia.
From super to gov influences..

 

[Captain_Chaza]

She can be cruel to those who did not "RUN for SHELTER"-----Chart data is real-time, as of 20 12 2024 03:59pm AEDT

 

[dyna]

What's this doing here , Skip ?

Are you on the Kraken , already ?

Can't it wait until Christmas !

Darlene Love ! Ah , that's nice .