Just a thought on Banks.

[asylum]

The market seems to have price in a 2% hike now if that is so who thinks that this may be the last of the hikes. If that is the last of the hikes would it be wise to maybe start feeding on bank shares, I am still holding asa but was thinking of maybe adding some more or have i lost the plot completely. any opinions.

[#2]

To quote Simon, when it turns there will be plenty of time to get in. Or maybe that's what i wanted to hear

[JohnnyCash]

I think Titos latest comment was the catalyst for the final dump/sell-off. I don't think banks will start to go up from these levels, but the 75 to 85 range will most likely be the bottom for both asa and sbk. Tito's worried about the growth in debt, but I think in the coming months you'll find it suddenly dropping closer to zero. With another 1% hike and threaths of another one should do the trick of consumers delaying new debt for a couple of months.

[Maggie]

Was also thinking of buying into ASA now but every time we think it has hit rock bottom, it takes another plunge, so feeling a bit nervous?

[#5]

Sorry for you. No bull as yet.

[Preston]

Mkadir, must i get some Sherbet for you. lol

[#7]

I want the one with the lucky charm..

[Preston]

you mean that you got the "Super Idego charm". okay i see your point now.

[Brazen]

JC, SBK at these levels is pretty attractive. A years time it'll be like when SOL was at 220 a year ago. One of those deals where you wished you'd sold your house and stocked up. Of course, the problem now is you can't sell you f*****g house.

[asylum]

yep Brazen you right sold sol at R 215 last year and thought that was a good price, just goes to show, hope youre right about the banks.

[louisg]

With a forward dividend yield (tax free) of about 8% I'm buying. I do not expect any capital appreciation this year, but when that catalyst arrives, hold on tight. Bought at 83.

[#12]

When the hole is closed, you wont be able to get in unless you force urself into that pie.

[JohnnyCash]

B, here's my plan. Take the total capital Im gonna put in banks and buy ASA, SBK, FSR at the end of every month for the next 6 months, regardless of the price on that day. Im not going to try and call a bottom, just dont want to go in lockstockandbarrel only to see it go down another 10%, but divi yields are extremely attractive even if they might drop the divi in 1 year by x%

[Brazen]

Excellent plan JC. Was actually just doing some thinking myself. No way I would trade it, so it would have to be shares in my long term portfolio. I already have SBK there. Prolly just add and set a 20% stop loss and move on with my drinking.

[JohnnyCash]

Talking up own book.... Just a thought. Abil is getting klapped the same way as the other banks, prolly the other micros as well. And to some extent they are also affected by the over extended consumer and higher default rates BUT what seems to have been forgotten is that their customers in fact pay way higher rates than prime and have been doing so even before rate hikes. In fact Abil is continuing to bring the borrowing cost of their customers DOWN. That portion of the market in fact are experiencing the effects of a lowering interest rate cycle! Just a thought as I said. And a nice R1.05 divi coming up in 2 weeks

[john_1]

Just a thought, looking at my watch list I have 6 shares in the green today ACL ARI MTN BIL EXX KIO, the returns since the 13 january this year are ARI-95%, ACL-71% ,BIL-52% ,EXX-51% ,MTN-29% ,KIO-18% just maybe this might be a good place to park your cash if you want to outperform cash and the market.

[louisg]

JohnnyCash, great insight.

[SIMBA]

From a simplistic point of view,althought rsa banks are being punished as global banks are, their only crime is throwing credit cards at every one during 2005/6. In my oppinion their fundementals and client base are as they were prior to the sub prime fiasco and once the N.C.A. starts working through and prevents them again being swamped with uncollectable debt.There is no reason they should not fly [g-d i hope so]...........

[Surf_Rat]

Outside Margat Hotel the wind is still on shore ready to paddle Tito and The zenophobs eskom and the petrol grommets out at the shark nets all the money is awaiting a big off shore swell ,go the banks , go vox , go wescoal ,and someone please help afrox sell some gas

[Surf_Rat]

Outside Margate Hotel the wind is still on shore ready to paddle Tito and The zenophobs eskom and the petrol grommets out at the shark nets all the money is awaiting a big off shore swell ,go the banks , go vox , go wescoal ,and someone please help afrox sell some gas