ANZ quite a bit under NTA (which has probably also changed quite a bit!).
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ANZ quite a bit under NTA (which has probably also changed quite a bit!).
I see in the absolute depths of the 2008/09 financial crisis wbc nzx was $18.60 or there abouts and today the share price is under $17 NZD. Are things just getting a little overdone here? I was quite happy to pay $28 a share awhile back but balk at the idea of purchasing something with a 40 per cent discount :)
Yeah me too. What a difference a week or two makes. I was buying at $19 but now am wondering if $16 is too much. Still I figure buy on the way down. If it goes up again you will make money if it goes bust all the money in the world will be just about worthless anyway. But where is the bottom nobody knows. I have far too much invested in Westpac, as well as have lost far too much on paper as well to abandon it now.
Well something strange. Last sale on ASX at aud $14.53. Yet NZX opens ths morning strongly with reasonable trades at nzd $15.65. I know there are exchange rate differences but we are at near parity at .98 cents. Looks like someone short selling on ASX to bring the price down, and then cleaning up the NZ market at slightly higher prices. Something is afoot. If true I would call it market manipulation. I am sure overseas entities would love to secure one of the big four banks. I guess we will see a Notice being giled not to long away.
When a company has an 'associate' stake in another, dividends from that associate reduce the book value of the associate stake. But alongside that effect, associate profits -in proportion to the share of the associate held- increase the value of the associate stake. It is that share of associate profits that I wish to table here
'Westpac' share of Pendal dividend (column 5) figures are from my post 164.
Financial Year Pendal Total Comprehensive Income Westpac Pendal Holding EOFY Westpac Share of Pendal 'NPAT' less Westpac Share of Pendal dividend equals Associate (Pendal) Annual Valuation Adjustment 2014 60.76% 2015 $186.691m 31.04% (from 23/06/2015) $15.718m $0m $15.718m 2016 $58.981m 29.54% $17.423m ($34.060m) ($16.637m) 2017 $154.698m 8.99% (from 26/05/2017) (1) $34.637m ($37.225m) ($2.588m) 2018 $224.361m 9.69% $21.741m ($12.523m) $9.218m 2019 $156.994m 9.55% $14.993m ($15.576m) ($0.523m)
(1) Note 'sale of stake' date is one day after the ex-dividend date.
Sample Calculations
FY2015
1/ Split year into two 'equity stake' periods: 266days + 99days = 365days
2/ Split profit into two periods: $136.054m + $50.637m = $186.691m
3/ Work out Westpac share of profit after Pendal becomes an Associate:
(0 x $136.054m) + (0.3104 x $50.637m) = $15.718m
FY2016
1/ Work out Westpac share of profit:
(0.2954 x $58.981m) = $17.423m
FY2017
1/ Split year into two 'equity stake' periods: 238days + 127days = 365days
2/ Split profit into two periods: $100.872m + $53.826m = $154.698m
3/ Work out Westpac share of profit:
(0.2954 x $100.872m) + (0.0899 x $53.826m) = $34.637m
SNOOPY
I think someone is accumulating WBC. Last sale in ASX yesterday was aud $16.50 or nzd $16.80. This morning on NZX has buyers at $17.60. Now thats quite a difference for market cap. We in NZ are not price setters, but follow the buy/sell on the ASX. Now I have been trading these for a few years, and never has the NZX been a price setter before the ASX opens.