I bought some physical shares at 24 and 23 to get the dividends. I guess that I would only sell these shares back to Westpac around 21 after the discount. So, the share price must be at 23.4 for me to sell back at a 10% discount. If the share price is around 21, I would offer them to Westpac at a 0% discount. They can take it or leave it and buy it on the market at full market price instead. I guess, if they really want to help retail holders, they should accept some shares at a 0% discount from ALL participants.
The question is why bother? Just wait a bit more and I will get another dividend BEFORE having a chance to claim the franking credit back from the ATO. If the share price is at 23, it is likely to pull back. I would just sell it on the market if it gets to 24 and buy it back when it pulls back. The Westpac share price is not going to run away any time soon. ANZ and NAB may even fall lower. I would be happy to get out of the physical shares as soon as I break even on them and keep focusing on the options to sell put and lock in lower prices.
WBC Price at posting:
$20.82 Sentiment: None Disclosure: Held
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