“I think if I was accumulating financials at the moment I'd look...

“I think if I was accumulating financials at the moment I'd look no further than the banks. WBC are likely to get a nose bleed tomorrow when the market opens. I noticed you had a "Buy" on them some months ago at $28.50. If it was a choice between CGF and WBC in my opinion it's a no brainer.”

@danielpotter1972,

I agree with you on the banks; I think they are universally hated and have been discarded by the market in favour of resources (a crowded trade, if ever there was one) and any stock remotely associated with “technology” (especially if SAAS appears somewhere in a company’s presentation pack).

As for WBC’s remediation charges, I think the market will shrug it off as a one-off for this financial year. Instead, have a look at ANZ’s result this morning, which I think is far more instructive for the durability of the business models of the major Australian banks.

Of course, that doesn’t mean that bank share prices will double, or even go up by 40% or 30%, even.

But it demonstrates that their downside is limited and the income they offer in the form of fully-cranked dividends is largely secure (with the exception of NAB, perhaps).