CBA, another low hurdle to jump over. Is CBA, a buying opportunity?

Jessica Amir joined discussion · Aug 13, 2024 14:13

For a lot of people, when they see CBA $CommBank (CBA.AU)$, the biggest bank in Australia, and the biggest company on the ASX down 4% from its record highs at $132.22, while offering a 3.5% dividend yield, to many it's a buying opportunity.

It has a low bar to bar to jump over too, which is positive for driving an earning beat – which is what will add hot sauce and kick up its shares, plus a boost to its buy back might be a nice surprise for shareholders too.

At last pulse check - CBA had a war chest (surplus of capital) - (at March end) of $7.7 billion, which is above the regularly minimum. So naturally you'd think CBA would return some of that to shareholders and extend its current $1b buyback program.

The market is focused on CBA delivering a better than expected result - again - that's what will drive its share price higher. Plus the buying by super funds and ETFs each quarter. So what to expect when expecting;

· Revenue is expected to fall from $13.620B to $13.455B

· Margins are expected to fall. Net income expected to drop from $4.897B to $4.760B

For more notes see

- You might expect the entire banking sector and perhaps the market to move higher if CBA reports a billion buyback

- How Volatility Brings Opportunities for Investors and Traders: The Power of Dip Buying in the Nasdaq 100 and CBA

The above quotes were also given to the Australian newspaper.

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151453268 witso : Hi there Jess, I had a bunch of comm shares back in the 90’s first share i ever bought franked divvies and a nice bit of growth when i eventually sold several yrs later for a roof over my head, wish i still had themAlso on the subject of share buyback schemes what is or are the purposes of these for stocks , it is a little unclear to me call me stoopid .Maybe this is covered somewhere

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54088 FROM RWS : refuelling

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Jessica Amir OP 151453268 witso : it's a great question. Share buy backs are great for shareholders and for those just buying into a company as well as it supports share price growth. That's the theory anyways. But it's just a puff away from its record all time highs now

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151453268 witso : Thanks for the reply, the comm bank ship has sailed for me but i have a buy back offer to consider in my current portfolio

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Jessica Amir

Moomoo Official Market Strategist

moomoo, market strategist. Seen/heard on Fox News Business, ABC, SBS, Reuters wires. Investor/Trader. Connect with me.

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