Westpac Trust - WPC

[TerryA]

Could one of the TA experts have a look at this chart and say what they think are the indicators for the SP in the short term.

[rotsevni]

Do you mean WPT?

[TerryA]

Yes - Sorry about that.

[OldRider]

I see the WBC dividend to be paid in December is to be A$51cps, a healthy increase from the A$44cps paid last year.

Not so good though it appears for the previous Westpac Investments shareholders.

Last years 44cps gave about $NZ48.5cps, then with imputation credits $NZ72.4cps

In all near a 30% income drop for those who were shifted from WPT to WBC.

[Phaedrus]

Terry,
Short-term indicators? You want to trade this stock? This is a good one to buy and hold, but not such a good trading prospect. While it is in a long-term uptrend, retracements are usually less than 10%. Take out slippage and you are not making enough per trade to make it worthwhile.
You could try buying every time it breaks a 200 day Exponential Moving average from below and Selling when it breaks a 200 day ema+10% from above. Such a trading system is marked by the blue lines, and would currently have you out of this stock.
To answer your question, short-term, this stock is due for a small correction.
http://home.ripway.com/2004-7/148483/WPT1112001.gif

[Skelessi]

I think that is probably correct, except there should be a credit given(like an imputation credit) in respect of that part of the dividend which can be attributed to the proportion of the company's income earned by Westpac in New Zealand. The new legislation to permit this allowance came in last tax year and is already applied by companies with business in both New Zealand and Australia. The New Zealand dividend statement will show withholding tax paid in New Zealand and this can be claimed as a Tax credit.

As a mollifying aspect of the situation, Westpac shares have risen over the last six or eight months from about NZ$20 to NZ$24 - an increase of around 16 - 17% [u]tax free</u>. Still makes the share worth holding - unless Cullen brings in this crazy capital gains tax on foreign investments. That will be nothing short of [u]stealing</u> straight out of peoples' savings before they have actually received any benefit. At least most other regimes wait until you have realised a capital gain before exacting the [u]penalty</u> for being an astute investor.