AFF Member Stock Discussion

[Dr Ralph]

BTW, anyone know if the dividend component of the buy-back price (which will be fully franked) will attract matching by that nice Mr Frydenberg?

Information about that here:

https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02405618-2HKKNG7PSSCOV9RFUME94BC8OJ/pdf?access_token=0007r30iQMUqMlYCScVRos2o8aiR

 

[jeza]

AXE which has announced gaining patents in South Korea & China for it's Quantum Computing Chip in the last 2 days is having a fair run.

 

[MARTINE]

Cant remember how many times I've read market 'experts' saying CBA is overvalued yet not selling has been one of my best decisions ever. Just a year ago lots of talk about coronavirus and how banks would be the worst affected. Lucky I didn't take that advice.

I bought more shares APRIL 20-MAR 21 than ever before in my life ... thank goodness !! Having worked in the past as an expert witness there are many interpretations of the same set of facts …..short of illegal insider trading so called financial ‘experts’ do not have any better clairvoyancy skills IMHO than doing ones own detailed research ..IMHO…
I like to invest little and often and always buy more when market down

 

[Dr Ralph]

I bought more shares APRIL 20-MAR 21 than ever before in my life

I wish I could say the same!

I certainly bought at that time, but definitely not more than any other time.

 

[RooFlyer]

Information about that here:

https://cdn-api.markitdigital.com/apiman-gateway/CommSec/commsec-node-api/1.0/event/document/1410-02405618-2HKKNG7PSSCOV9RFUME94BC8OJ/pdf?access_token=0007r30iQMUqMlYCScVRos2o8aiR

Thanks, but that gives me:



But CBA give a worked example in their info booklet, which by the look of it, was the source you had.

 

[Mr_Orange]

Thanks, but that gives me:

View attachment 255215

But CBA give a worked example in their info booklet, which by the look of it, was the source you had.

The link worked earlier but that access_token bit at the end must have an expiry built into it.

 

[Captain Halliday]

I got out and back in at the right time so no complaints from me. A friend got in at over $4 so is still waiting for TLS to come back.

Keep quiet about the T2 float and nobody gets hurt!

 

[RooFlyer]

I just did the CBA buy-back calculator for my SMSF, with me retired and a certain CGT cost base. 16.4% gain with the buy-back Vs selling on-market now, assuming selling at $100 and a 12% buyback discount (although it doesn't include brokerage if selling on market, so the % buy-back uplift will be greater). 22% gain if its a $105 price.

Against this is the potential for capital appreciation after buy-back (should be some, although only ~6% of shares being taken out) and dividends for the next X years - I'd expect ~$4 pa. So on a NPV basis, it looks marginal - but what's the WACC?

I might tender some with a low % discount, so that its only a better return, if accepted.

 

[tgh]

The security of the historic dividend stream makes lightening our CBA holdings a pass , what else has been/can be better ?
Other entities may pop up with short term flash in the pan returns, but the banks money printing licence is the franchise to end all franchises…

 

[Dr Ralph]

I just did the CBA buy-back calculator for my SMSF, with me retired and a certain CGT cost base. 16.4% gain with the buy-back Vs selling on-market now, assuming selling at $100 and a 12% buyback discount (although it doesn't include brokerage if selling on market, so the % buy-back uplift will be greater). 22% gain if its a $105 price.

Against this is the potential for capital appreciation after buy-back (should be some, although only ~6% of shares being taken out) and dividends for the next X years - I'd expect ~$4 pa. So on a NPV basis, it looks marginal - but what's the WACC?

I might tender some with a low % discount, so that its only a better return, if accepted.

I saw this yesterday not long after the buyback announcement and thought it provided a useful summary of who would benefit the most from the buyback:

How investors can cash in on the CBA buyback

As we predicted, Commonwealth Bank (ASX: CBA) has today announced an off-market buy-back, with the size – at $6 billion - slightly exceeding our expectation of $5 billion. Off-market buybacks are a tax-effective mechanism for returning franking credits to shareholders who most value them. The...

www.livewiremarkets.com

 

[I love to travel]

TLS doing well today not sure why

 

[burmans]

I agree with the second comment after that article, dependant on what you bought at there is a capital gain/loss element that needs to be considered.

 

[Dr Ralph]

TLS doing well today not sure why

Buyback announced. Strong dividend retained.

 

[MooTime]

TLS doing well today not sure why

apologies for the minature text. $1.35M buyback & dividend holds.

 

[Mr_Orange]

We bought QBE yesterday and are happy with today's announcements and price action.

 

[MooTime]

And GNC ripping it up today, up 12%

above $6 this morning, was $3 not long ago, I sold at $4 for nice profit, alas from from perfect timing.

 

[cove]

Yes we were tempted to sell QBE but held on. We used to write call options on them but stopped when we got busy at work.
CQE are calling today post their really good report. CharterHall fund owns many childcare properties and other real estate on long leases.

 

[Mr_Orange]

And GNC ripping it up today, up 12%

Probably something to do with this: Graincorp Announces Upgrade to FY 2021 Guidance.

 

[cove]

Yes brilliant crops likely this year so go Graincorp.
Last night i heard that the crops in WA are looking like being best ever.
Truck drivers will be in heavy demand.

 

[RooFlyer]

I saw this yesterday not long after the buyback announcement and thought it provided a useful summary of who would benefit the most from the buyback:

Thanks. That pretty much mirrors my own analysis, as a tax exempt SMSF investor. But again, no account made of future dividends with the 'hold on' option and as they say, they ignore the time value of money.