WBC is cheap after the massive selloff. It's cheap because it has been sold off and attacked by the shorts and unloved by many others including those suffering margin calls and crashed out ... We have 2 weeks of going sideway already. It will either crash and make a new lower bottom than 20.38 or it will pop and won't look back for a few more years ... I am betting that it will pop and force the shorts to cover. However, I also see that it cannot match the share price of ANZ and NAB for another couple of years when the governance is improved.
The Westpac chairman mentioned that he believed Westpac should be 2nd among the 4 banks and admitted the shortcomings. Westpac has not downsized. It still has a big workforce and reaches of the combined Westpac + St George. Perhaps, it is still 2nd in size but not in profitability. It can claw back the market share once they clean up the management. And it will clean it up. That is what a big business does in any crisis.
The 20% crash in share price presents an opportunity for some and hurts others. I am willing to take this chance and wait for 6 months.
If this baby pops in the next couple of weeks, it will be significant and those who sunk money in recently would be rewarded. I feel that WBC has found support around 21. It is inching up to 21.50 albeit quite slowly. It was sold off around 21.38 and 21.28 last week. Next time it will reach 21.50 and inches higher.
WBC Price at posting:
$21.07 Sentiment: None 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)