Hi @bambam074I agree that PTB probably is not a bad investment...

Hi @bambam074

I agree that PTB probably is not a bad investment (I am a long term holder, after all).

Two thoughts that may help inform your decisions:

1. Looking at the NTA is certainly a good approach to get a feeling about the valuation of a company. However, assuming that a company is a good investment because its NTA is above its market capitalization is way too simple. There are many, many other factors that make up the "right" price of a company. Examples include future growth, quality of management, cash flows, debt, business environment, brand, momentum, market risks, company specific risks, country risk, regulatory environment, shareholder structure, market mood and so on and so forth. There are stocks traded on the ASX that have a price to tangible book ratio of below 0.1 and stocks that have a ratio of over 100.

2. PTB's high nominal dividend yield of currently 8.75% is misleading. Why? Because you get a nominal 8.75% but immediately thereafter your stock is diluted by the DRP. That leaves you with a real profit of about 2% due to the dividend. For more details see my earlier post at https://hotcopper.com.au/threads/struggling-to-find-the-negatives-with-this-one.3152480/page-2?post_id=21736022