WBC - Westpac Banking Corporation

[Bill M]

I've noticed that Westpac has been announcing several issues of debt securities. Could somebody explain to me exactly what they are? Attached is a recent one, thanks.

 

[Birdster]

I've noticed that Westpac has been announcing several issues of debt securities. Could somebody explain to me exactly what they are? Attached is a recent one, thanks.

This link is a great start. (I didn't know either)

http://en.wikipedia.org/wiki/Security_(finance)

 

[Family_Guy]

Can someone explain WBC at the moment? I don't get the new SPS they want to start because it says in the prospectus that "on the winding up of Westpac" and thats the bit i don't get. I'm asking because in pre-open this morning, the stock is up 30% and i'm not sure if i should be holding or selling (don't need to answer that) because of this new stock code they are introducing.

Thanks
Newbie.

 

[roland]

Can someone explain WBC at the moment? I don't get the new SPS they want to start because it says in the prospectus that "on the winding up of Westpac" and thats the bit i don't get. I'm asking because in pre-open this morning, the stock is up 30% and i'm not sure if i should be holding or selling (don't need to answer that) because of this new stock code they are introducing.

Thanks
Newbie.

I don't have the answer to your question, but I wouldn't be concerned with the pre open figures as most of my stocks have unusually high pre open figures. They'll clear to a more realistic value just before open.

I'm holding, and will grab some more if it goes below $21

 

[roland]

Looking at a 2 year chart seems to indicate that Westpac is at, or close to the bottom.

Now, I am neither a chartist nor fully conversant with all the issues affecting WBC's SP, but at these levels I am thinking that it is a good buy.

When compared with ANZ's chart, it is obvious that WBC's lack of performance is not a Westpac thing, but just showing the pain of the financial sector.

I have been grabbing some of these since just before ex-div and the latest today at just above $21.00.

Even with the SP weakness the secure and high dividend returns along with the strength of being a bank .... and a strong buy rating from Aegis leads me to believe that WBC is a reasonable safe investment at these levels.

Just my opinion - would love to hear others ....

 

[ColB]

Like you said Roland pretty much the whole financial sector is experiencing hard times and not likely to turn around quickly in the short to medium term. I'm not a chartist either but it looks like a pretty good downhill trend to me. Might pay a reasonable dividend and maybe close to being a relatively safe buy but I couldn't help but think even a safe stock like BHP will outperform it over the next 3-5 yrs without any problem.

Disclosure: I used to own WBC shares until last week. Regards CB

 

[roland]

Like you said Roland pretty much the whole financial sector is experiencing hard times and not likely to turn around quickly in the short to medium term. I'm not a chartist either but it looks like a pretty good downhill trend to me. Might pay a reasonable dividend and maybe close to being a relatively safe buy but I couldn't help but think even a safe stock like BHP will outperform it over the next 3-5 yrs without any problem.

Disclosure: I used to own WBC shares until last week. Regards CB

Sounds good, my managed "resources fund" is heavily into BHP and RIO and the like, so I am covered there. Gotta' diversify a little though .....

 

[ColB]

Yeah you're right there Roland. I'm diversifying too. I'm diversified into Resources, Resources, Resources and some Energy.

 

[roland]

Outstanding day for WBC - up 7%. I followed this silly stock all the way down to $19.00, 400 units each $1.00 drop. Now happily selling as it rises again. Not to be too complacent, I suspect that a retrace to $19 is not out of the question - given the right catalyst.

 

[subaru69]

I'm diversified into Resources, Resources, Resources and some Energy.

I bought ANZ @ 28 and WBC @ 26 and due to my previous advanced investment style I didn't sell them as they dropped. So I bought a bucket of miners to diversify. Now they're going down and the financials are recovering.

Eventually things will go my way.

Disclaimer: things aren't that bad, it's all part of the fun

 

[UMike]

Outstanding day for WBC - up 7%. I followed this silly stock all the way down to $19.00, 400 units each $1.00 drop. Now happily selling as it rises again. Not to be too complacent, I suspect that a retrace to $19 is not out of the question - given the right catalyst.

I hope so.

I bought in twice at early $19s and looks like I sold a bit early in the 20s a few days ago.

Who knows a couple poor results elsewhere and they could get back there again. Somehow I think the worst is over for the banks.

 

[TheAbyss]

CBA are first cab off the rank for reporting so they will be a guide to what the other 3 do imo.

Looking at the CBA sp it would appear the expectation is for a good set of figures. If CBA report some good numbers it will rub off on the other 3 and they will rapidly rebound.

Got into WBC and ANZ on the strength of the CBA support yesterday so here's hoping. First stock in a few months i have bought outside IO and CSG other than a failed attempt at picking a bottom on BNB so any thoughts on the financials more than welcome positive or negative.

 

[roland]

I sold another parcel at $22.30 for a 3% gain. Getting nervous now as I feel WBC has run a little too hard. Still I am exactly where I need to be - doesn't matter whether is goes up or down now, it's either a buy or a sell depending on the next SP move.

 

[roland]

bad start for the day, NAB's announcement didn't help. I was so close to jumping the turnaround with WBC after the reassuring announcement, but I have enough tied up already, great to watch the SP recover so strongly

 

[McNovice]

Have been looking into getting some Westpac shares, but they took a bit hit today, especially after Lunch. Ok, I understand NAB took a hit on Friday due to their announcement and ANZ took a hit today due to the same reason NAB did. I cannot see an announcement from WBC- Does this mean the market is expecting one to come as the other 2 have?? and this is the reason for it to dive 8%? So I'm thinking hold off in case they do make an announcement as it will drop even more?

Views from Non Novicers would be appreciated

 

[subaru69]

Have been looking into getting some Westpac shares, but they took a bit hit today, especially after Lunch. Ok, I understand NAB took a hit on Friday due to their announcement and ANZ took a hit today due to the same reason NAB did. I cannot see an announcement from WBC- Does this mean the market is expecting one to come as the other 2 have?? and this is the reason for it to dive 8%? So I'm thinking hold off in case they do make an announcement as it will drop even more?

Views from Non Novicers would be appreciated

Very simple facts are:
1. the banking sector is cactus; check various threads such as 'imminent severe market correction','have banks turned the corner','XAO analysis' etc
2. NAB and ANZ effectively lied (thru non-disclosure) of massive write-offs, now no-one trusts ANY of the banks not to lie
3. politicians coming out and saying 'everything is ok, don't panic' = panic
4. WBC could be a great bank with no exposure to anything and still get slammed by this market sentiment (as it did today)

I know this response isn't either TA or FA in nature; but you don't have to explain light as a particle or wave to know the sky is blue.

PS- unfortunately I hold all stocks mentioned so am not attempting to down-ramp

 

[lsj84]

I worked at ANZ, there was an old lady handing over me a cheque to Bell Potter, which is her broker, of 20 or 30k to buy ANZ shares through Bell Porter at price of $23. that was in February. Then I cant remember clearly on which case, maybe Allco or BNB, Bell potter was publically critisized for their short selling behaviours. This is outrageours for me, and that poor old lady is so unfortunate that she believed their lies that banks have bottomed.

Sorry guys, I just went shorted on WBC last week after banks rebounded. The reason Im doing this is becasue banks are a myth, there are so many things that can be and will be uncovered during the course of ordeal. I still remember one JP Morgan banking analyst talking how pessimistic he was about aus banking sector on abc's lateline business and a programme about credit card issuing on abc's 4 corners.

Im not sure how different the stories in the US and in AUS. But if we follow the lead on Wall street, our banks would suffer further. Jim Rogers has been saying and saying on interviews that he has been and will still be short on financial indices.

This is a systmatic risk in banking, diversifying into it would be costly.

 

[wayneL]

Very simple facts are:
1. the banking sector is cactus; check various threads such as 'imminent severe market correction','have banks turned the corner','XAO analysis' etc
2. NAB and ANZ effectively lied (thru non-disclosure) of massive write-offs, now no-one trusts ANY of the banks not to lie
3. politicians coming out and saying 'everything is ok, don't panic' = panic
4. WBC could be a great bank with no exposure to anything and still get slammed by this market sentiment (as it did today)

I know this response isn't either TA or FA in nature; but you don't have to explain light as a particle or wave to know the sky is blue.

PS- unfortunately I hold all stocks mentioned so am not attempting to down-ramp

IIRC WBC was the bank that nearly went down the gurgler in the last property route. Jeez and this one is only just getting warmed up.

 

[dhukka]

Have been looking into getting some Westpac shares, but they took a bit hit today, especially after Lunch. Ok, I understand NAB took a hit on Friday due to their announcement and ANZ took a hit today due to the same reason NAB did. I cannot see an announcement from WBC- Does this mean the market is expecting one to come as the other 2 have?? and this is the reason for it to dive 8%? So I'm thinking hold off in case they do make an announcement as it will drop even more?

Views from Non Novicers would be appreciated

How could you not see a similar announcement from WBC over the course of the next 12 months? There is a distinct pattern here. Take a look at what happened in the US banking sector for a guide. No bank will be immune. Bank earnings have peaked and are now in reverse, the cycle has clearly turned.

 

[Greg71]

Hi,

Anyone else watching this double-top formation? Looks like it's ready to move.

Stochastic divergence as well.

Greg.