WBC - Westpac

[Grimy]

ANZ quite a bit under NTA (which has probably also changed quite a bit!).

[peat]

ANZ quite a bit under NTA (which has probably also changed quite a bit!).

yes I saw that as well. Of course recessions mean a lot more people default but I suspect long term value is coming into play soon if not already at these prices.

[Bobdn]

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

[Grimy]

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

Same here. Amazing what a difference a few weeks make!
I'm certainly keen to get some more (and ANZ), but holding off for now. Perhaps......

[bottomfeeder]

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.

[bottomfeeder]

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.

[peat]

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.

that last sale was yesterday, since then mkts have stabilised so NZ price doesn't need to reflect Aus close anymore.... its very dynamic out there!!

[macduffy]

that last sale was yesterday, since then mkts have stabilised so NZ price doesn't need to reflect Aus close anymore.... its very dynamic out there!!

Yes, and I wouldn't take too much notice of WBC trading on NZX. Tone is set from Aussie a couple of hours later and volume on NZX is thin by comparison, at the best of times.

[Snoopy]

Dividends Paid to Westpac by Pendal Group (PDL.ASX)

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

[bottomfeeder]

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.