Your thoughts are valid, thank you, investors can take a positive or negative view of future SP movement and dividend impacts. Using the CBA experience shares were depressed until clarity appeared as to fine and cultural change.
I think that that over the next week we will see a first stage of fallout, heads will roll, and steps taken to stop the rot. This should, in my view, stabilise the SP around $24, yes it might go lower but nowhere near $20
Particating in the SPP is a bit of a gamble now and there will be drop off in demand. As to dividend and means by which WBC will pay the fine, no automatic dividend cut will necessarily apply and if, again in my view, it there is a cut it will only be temporary. WBC can use other means to fund dividends ie capital notes, borrowing etc
So my investment thesis with WBC is to participate fully in SPP and accumulate at levels below if in the event shares continue to fall. I respect also other views to either sell and/or not participate and wait for bottom. Remember the Chinese proverb, those who want to try and pick the bottom end up with smelly finger!
WBC Price at posting:
$24.77 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)