Just reading the discussion here and while most of them are true I think the discussion is flawed for a number of reasons:
1) Why are you only limiting yourself to CBA (or banking sector for that matter). I've been a strong backer of BOQ for quite some time (mainly because of their phenominal growth over last 5 years and potential for mergers, acquisitions or even a takeover target). The point is there are 200 stocks in ASX200 so make meaningful comparisons. You first have to decide which sector you want to be in and then which company to pick from that sector. Comparing a bank to a drilling company is like saying "Should I buy a new LCD TV from JB HiFi or McDonald's?"
2) As everyone mentioned, decide on your risk and expectations. If you believe mining companies will return to agressive exploration programs in near term, then by all means stick with BLY. If you think there is no chance of that happening then what difference does it make which company within mining services sector you choose? And yes, technically BLY has a lot more risk than CBA - I don't believe in Beta myself, but according to Morningstar BLY = 2 and CBA = 0.70.
3) Dividends. I know, technically you can keep selling small chunks of high-growth, non-dividend paying stock every six months but isn't it better to receive fully franked distributions in your account, compliments of Mr Ralph Norris. If all you care about is capital growth, then BLY is probably a better bet but if you need steady income to get you by, then a dividend-paying blue chip stock is a way to go.
BLY Price at posting:
$2.85 Sentiment: Buy Disclosure: Held
