When you talk of companies the size of NAB you are not talking about trading but investing - it is a totally different mind frame of reference - it is about a longer term picture and about risk return possibilities.
I can park a significant sum in NAB at these prices get 6%+ per annum at low risk plus the 'real option' of a significant capital gain and the opportunity down the track to write covered options and increase the income. From an investment perspective it is an opportunity to good to miss.
If they fall further I will buy again and my yield will increase again. For me this decision should be made on investment issues and not trading - 10 years down the track it will be a blip on the charts.
This whole frenzy has been based on 'one' and only 'one' report written by one of the big investment houses plus some broker opinions. From experience they open up opportunities because of a dependence on their opinion. Two major instances have occured in the past year that show their fallability. First was a report on BSL when they were $4.20. The report put them at between $3.50 and $3.90. Please look at their current price. Secondly was the frenzy with ALL. A major put a sell on them and sold of 100s of millions of shares. Price fell well below $1.00 - check the price now. Soros made a famous line in the area of finance - read the lies and you make money.
NAB Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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