Another distress stock, currently at halt. Will the SP likely down by $4-5 due to share dilution? Will NAB be recovered? The housing market here already hype and a bit to late to catch up with the other 3s? [LD]
I cant speculate on the share price short term or long term but the big picture could get interesting in Australia very quickly especially after RBA rate cut. Banks have been reducing the amount of capital they have in respect to a home loan over the last few years, lower than pre GFC levels, after the next round of inevitable heating in the Sydney property market it is quite possible that property investors will start to move assets into other classes once they see the bubble start to burst, even where they are willing to take capital losses if it moves to quickly, and then the defaults will begin. The flow on effects to the banks could be exciting...if you don't have exposure to them.
I cottoned onto them when they lost 350 mill from a rogue trader, and then lost 2.2 billion in the american realestate market, (circa 2006) and their price went cheap. And they never really recovered. lucky to get out of it with some dividends really ! they're gone now though
NAB are the worse bank to deal with. I'm glad they are tanking hard. My mother had an account with them for 30 years, introduced fees on her account and couldn't give a toss about loyalty even though she is a pensioner now. The government was paying welfare into the account and she didn't want to move as it was too much hassle. What I ended up doing was moving all her cash to CBA, filled in all her forms of her direct debits and centrelink account update. Moved everything to CBA. Havn't spoken to NAB since. They can suck a big fat one. I never thought of NAB as that big of a bank to be one of the big 4. CBA and Westpac are the 2 biggest. ANZ isn't even really that big imo. Slam
NAB has been a terrible bank since the Frank Cicutto era and he was of course massively rewarded for his tenure of the CEO position. They have reportedly been vile to their small business borrowers who get into trouble and I have experienced how repellent their local managers can be to the retail customer. No sensitivity whatsoever - a specimen of the modern teched up woman savouring power - my experience. But over the last 10 years it has sent out to shareholders $17.50 in mostly fully franked dividends, so I'm guessing you could add another 7 grand in tax credits to that tally compared to your returns if they were left in some interest paying investment. So let's say you bought 15 years ago. Looks like the price would have been $28 max? The bulk of that would have been paid back in cash divs and tax credits in the last 10 years alone. Plus you would today have the continuing equity paying you 5.6% franked yield in fy14 on the last $35.20 share price. That's roughly as good as a yield of 8% from a non tax advantaged financial asset.
