CBA - Commonwealth Bank of Australia

[Dona Ferentes]

This is cocking up the index at the moment. Along with BHP treading water.

Mums and Dads shouldn't be worried if they bought the IPO at 6 bucks or whatever it was. Bloody hell, if you were a visionary back then with a spare $20k you'd be set.


View attachment 194002


For Australian sharemarket investors, it’s the elephant in the room: The market’s favourite stock, Commonwealth Bank, is ridiculously expensive.

Certainly, stockbrokers have been calling the biggest of the big four banks a ‘‘sell’’ for months. But, the brokers have been wrong for months … perhaps not for much longer.

CBA fell by more than 8 per cent last week as bank stocks had their worst week in more than four years. Traders noted how CBA fell by more than the wider index — and in one session was sold off more sharply than its rivals ANZ, NAB and Westpac.

But, for more than 800,000 mum and dad shareholders the primary fear is that CBA would need to fall by around one-third to drop to a level most experts now indicate as fair value.

To be precise, CBA would need to plunge from today’s level near $154 to around $107 in order to reach the so-called ‘‘consensus price target’’.

What’s more, as the bellwether stock for the wider ASX, any decline in the fortunes of the bank will immediately feed into the overall tempo of Australian share trading. CBA has been the outright winner among our blue chip stocks as rival banks barely kept up and miners drifted towards the bottom of their cycle, with BHP and Rio cutting dividends.

I believe it plunged upward today.

 

[Sean K]

I believe it plunged upward today.

More than Mums and Dads buying the dip by the look. Some very big players bought it up from the open.

I'm not sure why/how this happens except for trillion dollar traders with 30 year time frames take control.

 

[divs4ever]

This is cocking up the index at the moment. Along with BHP treading water.

Mums and Dads shouldn't be worried if they bought the IPO at 6 bucks or whatever it was. Bloody hell, if you were a visionary back then with a spare $20k you'd be set.


View attachment 194002


For Australian sharemarket investors, it’s the elephant in the room: The market’s favourite stock, Commonwealth Bank, is ridiculously expensive.

Certainly, stockbrokers have been calling the biggest of the big four banks a ‘‘sell’’ for months. But, the brokers have been wrong for months … perhaps not for much longer.

CBA fell by more than 8 per cent last week as bank stocks had their worst week in more than four years. Traders noted how CBA fell by more than the wider index — and in one session was sold off more sharply than its rivals ANZ, NAB and Westpac.

But, for more than 800,000 mum and dad shareholders the primary fear is that CBA would need to fall by around one-third to drop to a level most experts now indicate as fair value.

To be precise, CBA would need to plunge from today’s level near $154 to around $107 in order to reach the so-called ‘‘consensus price target’’.

What’s more, as the bellwether stock for the wider ASX, any decline in the fortunes of the bank will immediately feed into the overall tempo of Australian share trading. CBA has been the outright winner among our blue chip stocks as rival banks barely kept up and miners drifted towards the bottom of their cycle, with BHP and Rio cutting dividends.

eenie , meanie , whinee , mo which ETF will be the go ( BUY ? ) ( your ETF will be still carrying the div. payout until the next ex )

( don't forget the CBA heavy LICs either )

 

[Dona Ferentes]

well , LICs have been selling CBA off, if you'd paid attention. A difficult task, I know.
.
moving on... this whole "mums and dads" narrative makes me laugh. More likely, there are a whole bunch of "'grandmas and grandpas" who have held for a while, some even since IPO, most likely not throwing the 'paper round money' into it but caught up in the privatisation rounds: Telstra, NRMA, AMP, etc, and lucked out / amnesial about those duds. Bought and held.

And here's the thing... PE, EPG, slowing growth, NIMs, all those anal lists trying to build an argument/ trying to prise their shares off them ... doesn't cut it. A rising dividend, twice a year, better than the pension. it's a home finance biz signing up their kids for 30 years, it'll be around for decades, ... the yield isn't 3 percent, it's higher based for the invested dollars. And besides, sell and there's CGT. big lost cost.

So, is the premium justified? Quite likely, until there's a real blow-out, internally or externally induced

 

[qldfrog]

well , LICs have been selling CBA off, if you'd paid attention. A difficult task, I know.
.
moving on... this whole "mums and dads" narrative makes me laugh. More likely, there are a whole bunch of "'grandmas and grandpas" who have held for a while, some even since IPO, most likely not throwing the 'paper round money' into it but caught up in the privatisation rounds: Telstra, NRMA, AMP, etc, and lucked out / amnesial about those duds. Bought and held.

And here's the thing... PE, EPG, slowing growth, NIMs, all those anal lists trying to build an argument/ trying to prise their shares off them ... doesn't cut it. A rising dividend, twice a year, better than the pension. it's a home finance biz signing up their kids for 30 years, it'll be around for decades, ... the yield isn't 3 percent, it's higher based for the invested dollars. And besides, sell and there's CGT. big lost cost.

So, is the premium justified? Quite likely, until there's a real blow-out, internally or externally induced

News from my CBA put play discussed earlier; I sold one put @156 expiry 19/06 today at $9.5 ,was bought $8 on the 16/01;
2 more to sell when the panic will hit, I should get much higher but today: CBA is the typical aussie stock, like BHP, she'll be right....
Let's see what wall street send us tonight
extract of excel with added text:

CBA3V7

24/02/2025

CBA put option 19/06/2025@156

16/01/2025​

1​

bought at $8.00​

for​

$810.00

sold at $9.500​

got​

$919.66​

profit $109.66​

or 13.54%​

​

​