WBC, WESTPAC BANKING CORPORATION

[nipper]

In Reply To: early birds's post @ Dec 11 2019, 08:56 AM

half of those would be scalpers, I'd reckon. In and out for a quick profit ..... but a pretty slim offering, in the end.

[early birds]

In Reply To: blacksheep's post @ Dec 5 2019, 06:11 PM

seems retail investors see value for WBC at it's current price.
they gave WBC $770m at 24.20,

we might see stock price pop up today!!

[blacksheep]

some good news .

All the Banks rallied on the RBNZ review - Final decisions in RBNZ capital review still require $20b increase for banks but composition of capital is softened and banks get 7 years instead of 5 to adapt
- https://www.interest.co.nz/banking/102858/f...nks-composition

Seems there may be another WBC scandal about to be revealed, according to Investigative Journalist Anthony Klan

Anthony KlanVerified account
@Anthony_Klan
****SCOOP****
Massive new Westpac scandal. Billions gouged from 950,000-plus BT superannuation members over decade. Forensic investigation.
Details soon...

https://twitter.com/Anthony_Klan

Attached thumbnail(s)

 

[blacksheep]

In Reply To: blacksheep's post @ Dec 1 2019, 01:33 PM

Parken also says if you're worried about investing in the Big 4 Banks on ethical reasons, Suncorp and regional banks like Bendigo and Adelaide Bank or Tasmania's MyState may be alternatives

Anyone taking Parkins advice on alternatives might want to wait until after they appear before the house economics committee on Friday - as per Michael West article - https://www.michaelwest.com.au/the-barangar...banking-regime/

The questions now is which bank is next? Bank of Queensland, Bendigo, Macquarie, Suncorp and Adelaide Bank all faced the house economics committee on Friday. National Australia Bank, whose share price tracked the fall in Westpac shares after the news, is rumoured to be vulnerable, a likely target for Austrac.

[blacksheep]

In Reply To: blacksheep's post @ Nov 28 2019, 09:58 AM

A couple more opinions on whether WBC is a buy or not

Cashing in on the crisis
Is the Westpac scandal an ethical deal-breaker or a rare opportunity for investors?

Morgan Stanley's Richard Wiles has downgraded his estimate for Westpac's earnings per share by 14 per cent for 2020 and 3 per cent in 2021 and says the likelihood of a dividend cut has increased.

Fund manager Nathan Parkin, who was formerly deputy head of equities at Perpetual and is now investment director at Ethical Partners, is not convinced the damage will just be in the short term.

"The shocking nature of the allegations, and especially the exploitation element, does affect the brand long term and could affect the flow of business in mortgages and deposits," says Parkin, who has been reducing his fund's already underweight exposure to Westpac in the days since the crisis began.

"That could make the difference financially ... there is more risk attached to the stock because of it."

https://www.afr.com/wealth/personal-finance...20191128-p53exu

WAM and Motley Fool are also quoted in this article, but their opinions have already been posted below

Parken also says if you're worried about investing in the Big 4 Banks on ethical reasons, Suncorp and regional banks like Bendigo and Adelaide Bank or Tasmania's MyState may be alternatives

[blacksheep]

In Reply To: blacksheep's post @ Nov 28 2019, 09:58 AM

Mum and dad' investors allowed to back out of Westpac share buy in wake of scandal

The besieged bank said that following talks with the corporate regulator ASIC, it will give smaller investors eight days to withdraw their applications to purchase new shares, which were made before the scandal surfaced. There is no plan to extend this option to withdraw to institutional investors

Class action lawyers keeping an eye on the unfolding Westpac saga say it is possible this disclosure did not go far enough.

On page 21 of the prospectus released prior to the November capital raising, Westpac disclosed a "key risk" –failure to report "a large number" of IFTIs and referenced corporate watchdog AUSTRAC's investigation into the bank.

"Non-compliance with financial crime obligations could also lead to litigation commenced by third parties (including class action proceedings) and cause reputational damage," the document states.

"These actions could, either individually or aggregate, adversely affect Westpac's business, prospects, reputation, financial performance or financial condition.

Former ASIC lawyer turned special counsel for Shine Lawyers Craig Allsopp said the failure to quantify what "large" meant has put the bank in hot water.

"Westpac described a failure to report a large number of international transactions, what does large mean? I don't think people would have taken that to mean 23 million.

"Perhaps they should have said extremely large or in the tens of millions."

read more - https://www.theage.com.au/business/banking-...128-p53evr.html

[blacksheep]

In Reply To: early birds's post @ Nov 28 2019, 09:28 AM

That's what WAM has told it's shareholders - it's just their view. Probably a hundred other differing views from other insto's/brokers/analysts out there on the subject - some of which probably lean towards whether they are holding large quantities of bank stocks, or not.

As individuals, one has to make up their own mind and then wear the result of that decision Hope it works out for you.

[early birds]

In Reply To: blacksheep's post @ Nov 27 2019, 06:07 PM

so buy WBC for a short term trading!!

i bought few for longer term, seems have to get rid of them soon.

really thought this bad publicity bring WBC down to long term value zone . seems i'm wrong!

[blacksheep]

In Reply To: nipper's post @ Nov 27 2019, 05:49 PM

Buy Westpac for a week - then get out: WAM tells shareholders

Wilson Asset Management reckons brave investors may do well in a short-term trade on under-siege Westpac by buying the stock over the next few days as the negative headlines continue.

But they will need to exit soon afterwards, because the costs for Westpac will keep mounting from the AUSTRAC scandal, the fund manager said.

And this would happen against a backdrop of weak credit growth, thinning margins and ultra-low interest rates that will be a handbrake on all of the big four banks.

https://www.afr.com/companies/financial-ser...20191126-p53e9q

WAM was one of many institutions that participated in a $2 billion capital raising in early November before AUSTRAC's allegations that Westpac breached anti-money laundering protocols surfaced.

WAM also said buy big miners - BHP< RIO< FMG - who are all set to benefit when global growth improves and China starts lifting spending

[nipper]

rough calculation (formula = 5 day volume weighted average price less 2%) suggests that WBC SPP (up to $30k, closing next Monday 02/12) will be priced ~$24.75.

With the CEO and 2 directors soon out the door, despite AUSTRAC, is this price a buy opportunity?