Good to have some opinions to be voiced here! Thanks for your reply.
Personally, I also think that CBA is to high. But, since you said there is to much free cash about, then that means there will be some inflation down the road, and that means higher interest rates at some stage, which is good for banks generally. Also, all the big banks operate like a quadropoly, I mean, they will always make money, either way, just to satisfy SMSF investors (just me the cynic). Politicians and supervisory bodies will see to that. BKL is NOT in that enviable position.
I reckon you are pointing out one of their problems: Mark down. Revenue in 2016 was $596 mio with an NPAT of $100mio, now the revenue is a little lower: $568mio, BUT the NPAT $18mio = a massive decrease of 82%. From the outside, there would be this guess plausible:
Increased production coupled with massive mark downs, has brought up cost, has kept revenue sort of level, but now there is not much profit left.
The optimist would argue, this can only get better. Myself, I don't know - people have been optimistic for many months now.
Also, Marcus Blackmore did not participate in the recent CR (which diluted the capital). I don't remember exactly, I think had a house to buy. In itself, that sounds ok, financial pressures tax or real estate wise do come up, the CEO of BUB has done it, the former CEO of A2M did it (i.e. sold shares of A2M). In a way, it is convenient though.
... getting late now
DYOR and cheers
BKL Price at posting:
$71.58 Sentiment: Sell Disclosure: Not Held
