The simplistic case I used earlier is for a zero tax environment only. If you have any capital gains from other trades that you'd like to wipe off then maybe the buyback has some added value. This buyback will give everyone significant paper losses.
There are around 3.5 billion WBC shares out there. They have $3.5 billion to burn, the easy option would have been to pay a special dividend. Although the bank obviously still has a motza in franking credits... difficult to estimate but looks like about $7 billion-ish. Clearing this out, I suspect, is what is driving this buyback brain wave.
They've had to extend the offer for anther two months and also reduce the discount because word has filtered through to them that the whole world now knows just how inept they really are. Their excuses are laughable and highlight even further just how useless they are.
I will be taking part in the buyback, and then selling the remainder of my holding. I cant get shot of this lot fast enough. They are the Theranos of the Australian banking industry.
WBC Price at posting:
$20.82 Sentiment: Hold Disclosure: Held
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