Buffet said EPS is the best means to measure a share. Earnings are the key. All the talk about net margins and investment in AI are for management to worry about. As a shareholder/investor all you should care about is your cut from the profit. A simple PE ratio is the best way to gauge if CBA is worthwhile. Its still comically valued at 23 times earnings. $117 if when it becomes 20 times earnings. Which is also the forward earnings as the expectation is next year results will be flat.
Party may not be over, as it fell hard at the beginning of August, only to rally again. But I wonder if the investors will have the will to bid up the price again.
For whats its worth, my put option is up 250%, It could be a ten bagger if it falls below the strike of $120 within the next 6 weeks, as the expiry runs to January 16th 2025. I bought the option so cheap given it was 20% out the money at the time of purchase.
Im not cashing out yet, no way. Volatility and harp dips are my friend
CBA Price at posting:
$134.89 Sentiment: Sell Disclosure: Not Held
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