How it feels to miss the bottom?, page-245

Interesting Kohler thinks the long term difference between the share prices cba vs nab and the others comes down to "management"

I wont dispute one management over the other but I question if management can sustain such a monster premium over asset value in a time like this when all the businesses are relatively the same.

a management premium of 65% over book (Fridays closing prices) vs its peers at 1X times book seems a bit of a stretch

Who is the better manager?

If one business business breaks the law 57000 times and negotiates a$ 700 M settlement

VS

another business business breaks the same law 23,000, 000 and negotiates a 940M settlement (well provisions at this time)

Whilst the provisioned settlement is much higher for the second business than the first, the settlement per breach is significantly lower - i would say the second business are by far better negotiators and managers than the first given the outcome of the same legal issues.

Anyway just a thought in the discussion

PS I own no OZ bank.

Good luck