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CBA - Commonwealth Bank of Australia

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it is definately retracing at the moment the chartist in his free weekly chart suggested that it was heading further down and probably thru the support level at $46
 
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it is definately retracing at the moment the chartist in his free weekly chart suggested that it was heading further down and probably thru the support level at $46

As always - anything is possible. However, there are also some compelling reasons to think it may be reaching bottom now (at least in the short term). Yesterday it pushed through it's short term support and then bounced straight back above it and closed above. Volume yesterday (6.7mil) was not out of the ordinary - so to me - no huge signs of mass dumping. We will also start to see the build up to the dividend (it's about 6 weeks away) so funds/investors will start to hold what they have and accumulate more so they abide by the 45 day imputation ruling. Any end of financial year selling and portfolio adjusting should also have finished. Even with European banks going to hell in a hand basket - Oz banks are somewhat (although not completely) sheltered from the mess so may see some overseas investment flowing in to them. So all in all (in my opinion only) I think there are some positives to see at least a short term rally in the stock.

malachii

PS - PLEASE NOTE I OWN SHARES AND OPTIONS IN THIS COMPANY. MY OPINION IS VERY BIASED!!!
 
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CBA

A ton of support in July around $45.10

Which coincides with the 3rd Quarter lows at the same time.
 

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CBA Commonwealth Bank of Australia

As I mentioned earlier in this post, if funds are more expensive for the Commonwealth Bank, as theyve stated, then they should increase all their customers deposit rates by 0.1.

If they dont raise their deposit rates by 0.1 they would have lied and are just after more money for their executives and profits.

Which is it Commonwealth Bank?
 
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Re: CBA Commonwealth Bank of Australia

As I mentioned earlier in this post, if funds are more expensive for the Commonwealth Bank, as theyve stated, then they should increase all their customers deposit rates by 0.1.

If they dont raise their deposit rates by 0.1 they would have lied and are just after more money for their executives and profits.

Which is it Commonwealth Bank?

The pressure on banks' funding costs is coming from their wholesale funding, largely sourced from overseas.

The fact is that Australia relies on borrowing from overseas. Increasing domestic deposit rates won't increase the volume of these funds sufficiently to offset the need to replace overseas funding as it matures.
 
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CBA : Looking for a Seasonal Top into the 5th August .
Multiple time frames moving into Geometric alignment should turn trend down .
 
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Anyone got any ideas why CBA is copping a hiding of late? It seems to over-react on the downside to most things these last few weeks - especially as banks are making hideous profits. I know the other 3 are all paying divs at the moment but below $49 seems to be on the cheap side.

It has been in a down trend since mid Sept but seems to be reaching the bottom of the channel (IMHO). Will it bounce or break? Any thoughts?

malachii
 
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CBA Weekly

CBA should have found support @ $50.04 in the 2nd week of October and
by the 3rd week should have been trading above $51.25 and
heading towards the October highs by the 4th week….

And then continuing higher towards $56.29 in the 4th Quarter.

However, by the 4th Week it was struggling and now looking to move
down into lower support levels.

A number of support levels, as shown need to be verified with lesser timeframes patterns.

With major Support @ $46.22
 

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Wow it is bank bashing season again, got to love it I picked up some more CBA this week.
Just a quick opinion of recent events.

Politicians flapping their gums at the evil banks is almost a annual event. (except through the GFC when they apparently saved our bacon).
What are they going to do anyway. More regulation will be a massive backward step plus the Reserve Bank is laughing because the big four are taking all the heat and doing the RBA's job for them. Look at it this way if the government made the banks cut interest by 1% the RBA would have to put up interest rates by 1%.

The CBA put rates up .45% this is great news for investors. People suffer from inertia when it comes to banks, we moan and groan but it is to hard to spend the couple of hours required to change institutions.

CBA has:
The best ROE of any of the big 4 (16.8)
46% market share in WA, our best state economy through the purchase of Bankwest.
Sustainable competitive advantage.
A long history of being priced at a premium to peers but currently at a small discount.
At a small discount to current intrinsic value (about $53.00) with IV rising at about 16% PA over the next couple of years.

If I personally banked with CBA I would move my money to a credit union or building society and buy CBA shares.:2twocents
 
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I'm keeping an eye on it, i may buy at 46-47, might see how any 'regulation' talk goes, but I can't see it being anything that has any more than a token effect.

Gottliebsen has an article on eureka report about deposits maybe being better than an investment in cba... I don't know, I'm not subscribed atm. I can't forsee any real problems ahead - but I don't really know much.
 
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Gottliebsen has an article on eureka report about deposits maybe being better than an investment in cba...

That really is a silly statement I mean deposits income if that what Gottliebsen means is not a tax effective way to invest. The income is just added to your normal income and if high enough you will end up paying PAYG Tax on it unlike dividends :2twocents

laurie
 
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Here's the headline anyway.. i can't forsee what the trouble is.

Safer in than on banks

By Robert Gottliebsen

Poorly planned moves to lift rates beyond RBA guidelines is set to cause trouble for bank investors, making deposits look more attractive..
 

Julia

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That really is a silly statement I mean deposits income if that what Gottliebsen means is not a tax effective way to invest. The income is just added to your normal income and if high enough you will end up paying PAYG Tax on it unlike dividends :2twocents

laurie
It's not necessarily a silly statement, Laurie.
A lot of depositors in CBA will be retirees in pension phase of their Super who are paying no tax. Many different tax situations exist. Even if not in pension phase, if the deposit is within a super fund, the tax is only 15%.

Tightwad: are you able to provide a link to the original article?
I've found it on Eureka Report, but the page is unavailable.
 

YELNATS

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It's not necessarily a silly statement, Laurie.
A lot of depositors in CBA will be retirees in pension phase of their Super who are paying no tax. Many different tax situations exist. Even if not in pension phase, if the deposit is within a super fund, the tax is only 15%.

At CBA's Friday's closing price of $48.88 dividend yield is 5.93%. If in pension mode, after franking credits this equates to 8.47%. If not in pension mode it is 6.97%.

CBA's current term deposit offerings are 6% for 12 months up to 6.40% for 60 months.

It certainly looks like it's better to be a CBA shareholder than a CBA term deposit customer.

I'm a shareholder but bank elsewhere.

Please correct me if my maths are wrong.:)
 
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Nice little result from that terrible rate rise of 0.45%, will add about $600mil to CBA bottom line plus stronger ballance sheet will further reduce cost of capital in international markets.
 
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It's not necessarily a silly statement, Laurie.
A lot of depositors in CBA will be retirees in pension phase of their Super who are paying no tax. Many different tax situations exist. Even if not in pension phase, if the deposit is within a super fund, the tax is only 15%.

Julia I agree but I was responding to the information given by Tightwad
Gottliebsen has an article on eureka report about deposits maybe being better than an investment in cba... I don't know, I'm not subscribed atm. I can't forsee any real problems ahead - but I don't really know much.

laurie
 

Julia

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At CBA's Friday's closing price of $48.88 dividend yield is 5.93%. If in pension mode, after franking credits this equates to 8.47%. If not in pension mode it is 6.97%.

CBA's current term deposit offerings are 6% for 12 months up to 6.40% for 60 months.

It certainly looks like it's better to be a CBA shareholder than a CBA term deposit customer.

I'm a shareholder but bank elsewhere.

Please correct me if my maths are wrong.:)
No disagreement with your calculation, Yelnats, and you're quite right, of course.

What you're omitting, however, is the desirability for many people to have a sense of security for their capital. No matter that ultimately the SP will rise, in the meantime the lack of stress if tax free funds are neatly tucked away in a guaranteed environment can be pretty appealing.

Depends very much on the personal circumstances of the investor and their tolerance for volatility.
 
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CBA announced its intention to release a retail bond to be listed on the ASX.

"The interest rate will equal the sum of the 90 day bank bill rate plus a margin of between 100 and 115 basis points to be determined prior to the launch of the Offer."

Doesn't seem to be as good as PERLS.
 
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