hi Oakcliff...in the short term CUS is stuck in a trad1ng range between 2.60 and 3.20....a rectangular top..in simplistic terms buyers outwieght sellers as it moves down to $2.60 and sellers outwiegh buyers as it moves towards $3.20. However CUs management have demonstated they have mountains of cash with the 16 cent total cap return and the well executed buy back mainly between $2.55 and $2.80. So the lower trading range is well protected from a breakout from the rectangular top to the downside by buyer support from punters and CUS manangment . With the powerful cash generation of CUS Im expecting a dividend announcement to the upside which in turn will affect the value of the share. At a SP of $2.90 a 5% full year dividend is 14.5 cents however as its the maiden dividend presumably it will be for 6 months i.e 7 cents. However management may surprise and pay a dividend on the full year ( or the equivalent there of) There is also the expected announcement re ANZ ( my prediction as very focused on ATM expansion i.e branding deal with CUS ) signing on as the last of the 2 banks in NZ. I think in the short term there will be a business update announcing a record 2nd half profit and the SP will trend towards $3.20 but whether it can break through the resistance depends on the announcement of the profit, EPS, dividend and NZ. Wildcard scenarios is CUS taking out CASH CARD or vice versa OR international private equity group taking out CUS.Im in Bali at the moment and there seems to be an ATM every 50 metres on every main street - hope we dont reach that in Australia !
CUS Price at posting:
$2.81 Sentiment: Buy Disclosure: Held
