Commonwealth Bank of Australia

ASX:CBA

Commonwealth Bank of Australia

ASX:CBA
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$159.03 (+1.8%)
Last close price
#228
Rank
3
Held by
15
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Reports (3) My Report Forum Investors
Forum Topics CBA CBA Extreme share price?

Pinned straw:
Rick
Added 4 months ago

I can’t believe the momentum behind the Big 4 banks this year? CBA is up 40% in 12 months, reaching $134.25 today! Until today I’ve held onto every CBA share and said I wouldn’t sell because of the capital gains. The temptation is just too much at these levels. I’ve sold some CBA and NAB today and will offset some of the gains with losses on a few poor performers.

Reasons for reducing:

  • PE 22.6x , the highest in 5 years
  • Forward ROE 13.7%, OK, the best of the big 4, but not exceptional
  • Dividend 3.5% fully franked, OK but not as good as a term deposit
  • PB, 3 x book value, very high for a bank
  • PEG 8.7, not compelling
  • Analyst TP Consensus $93, can’t see the share price holding
  • Annual return based on McNiven’s valuation is 7% per year (incl growth & dividends). There are solid growth stocks with higher ROI.


Held IRL (4.5%)

Solvetheriddle
Added 4 months ago

@Rick its got me baffled as well. banks around the world are rallying. even dogs like BEN at multi-year highs. when i did my annual performance review NAB was there with the semi-conductor stocks on yearly performance. IDK, the interest rate story has run its course, bad debts i think no change. at a preso, a WAM guy said there was serious shifting in AA that helped banks, out of more risky sectors. idk. I cant see any value in these guys, i sold all my NAB and some more CBA. The tax bill stops me from selling more. i have to stagger it over several years. maybe it is liquidity flowing into the market, intl equity flows have been a record this year so it has to go somewhere, that's the best I've got.

ill sit on the cash and wait until result season for some opportunities, hope all is well with you

15