Maybe, WBC sure has got good metrics 5.1% dividend yield, earnings yield is higher at 6.47%, PE Ratio 15.45%.
Of course Richard Wiles of Morgan Stanley bases his thesis on the gremlins preventing further earnings growth due to this UNITE offshoring thing which led to the collapse in the WBC SP from $39.62 to $29.61 given the horrendous money laundering scandal, auto finance scandals, and responsible lending problems.
Provided there are no other gremlins in the WBC SP, WBC should be higher than $29.62 IMHO but the regulatory pressures weigh as Richard wiles of Morgan Stanley references with his thesis against Miller's embattled UNITE Program.
Social media also suggests UNITE is underfunded and the cost pressures/ lack of staff in Sydney are causing problems, what Wiles calls "execution risk".
You need staff in Australia for an Australian bank to execute according to Morgan Stanley and Richard wiles. Who would have thought?
With earnings yield higher than dividend yield, the impact of the Richard Wiles, Morgan Stanley thesis is having a great effect on the WBC SP although you would think that the SP reduction from $35 to $29.61 would have more to it than that?
WBC Price at posting:
$29.61 Sentiment: Hold Disclosure: Not Held
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