#me too.......udc finance possible cash raising is adding to the uncertainty....still a good share
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Craigs research this morning on projected yields, has HBL's gross dividend yield increasing from 7.1% [2018] to 7.9% [2019] an increase of 11.26%.
Great yields for those who spotted the durable competitive strengths of HBL,and brought at sensible purchase prices.
Posted recently. Even removing my own confirmation bias regarding methodology of measuring EPS when significant new shares are issued during the year. I note the following 2018 PE's straight off 4 Traders based on Friday's closing price.
NAB 13.35
ANZ 12.16
WBC 12.68
CBA 13.57
BEN 12.13
BOQ 12.72
Average of Australian peer group 12.77
HBL even with the recent SP decline 15.21.
Share price to bring the PE into line with peer group 12.77 / 15.21 x 1.81 = $1.52.
Note: many of HBL's peer group have track records going back more than 150 years and vastly better credit ratings.
2 Years ago HBL traded at about a 2 PE discount to its peer group.
Back-testing of support in the 150-160 range coming in the medium term ? You be the judge.
didn’t poor ‘old Snoopy bring forward a very compelling PE debate awhile back and end up getting slated by a lot of people on ST for his comparison of HBL to the big ozzy banks?
I really enjoyed all of the contributions at the time, but seem to recall that the outcome (general consensus) was that a slight PE premium for a growing kiwi bank vs the ‘large, mature & clunky' ozzy banks was deemed acceptable?
charts indicate support at around 175. should be fine.
CBL debacle will be having a flow on negative effect on HBL - overseas investors would be wondering whether RBNZ has what it takes to supervise the financial sector.
The big trading banks are effectively supervised by RBA so don't look at the trading banks as guidance of how overseas investors view RBNZ.
https://www.insurancetimes.co.uk/cap...426534.article
"CBLI had significantly under-reserved its French business to such an extend its adjusted capital for solvency purposes (ie excluding inadmissible components) was most likely to be less than zero’, according to the court documents."
CBL debacle has the potential to have a flow on effect not just on HBL but on all of our (NZX traded) stocks. Overseas market will wonder whether governance in New Zealand is only on a voluntary basis for members of the rich and famous boys club. Not a good place to invest money ....
Just hoping that our market authorities wake up, find their dentures and sort out this mess (including demotivating the next bunch of incompetent yes man to repeat this debacle) - and hoping that whatever they do will be enough and in good time for the fickle international markets to be satisfied. Sitting the issues out and slapping afterwards some of the culprits with wet bus tickets won't do this time.