Quality bank. But I've long believed that the buyers of this stock buy it only reluctantly because of lack of alternatives in our stock market. We have long been a banks+miners stock market, and with miners earnings being called into question over the longer term, a lot of capital is going to where earnings will be consistent. With our highly leveraged real estate market, residential mortgages seem the safest bet for earnings in corporate Australia.
Still a few things I cant comprehend, is with NAB at 15 times earnings, at CBA at 29 times earnings. The market prices two years' worth of NAB earnings as equal to one years' worth of CBA earnings. I think that's totally irrational.
Its one thing for LTH to cheer the stock on, but very few of them articulate reasons for why CBA represents value that this prices?
CBA Price at posting:
$164.72 Sentiment: Hold Disclosure: Not Held
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