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CBA Re-entry point on the lows

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CBA Re-entry point on the lows

Hi James I made a tidy profit last year on CBA and while I do not expect it to get back down anywhere near where it got to then, I am hoping for a decent pullback, so I can get in again. At time of writing it is circa $94.00. My question is----At what level would you look to re-enter and what do you think will trigger / continue to make it fall?? Thanks again MickO'

Answer

Hi Mick,

We like to watch CBA carefully as you’ve enjoyed it can deliver some solid gains while also paying an attractive fully franked dividend, as you’re alluding to its all about entry levels! MM reduced our holding up at $106.44 and even though the stocks corrected almost 12% we’re not looking to increase our exposure at this stage.

  • The stocks forecast to pay a 4.5% fully franked dividend over the next 12-months hence it should find support into weakness.
  • Our optimum accumulation area is between $86 and $92 i.e. after its panicked the traders out under $92.

NB If we see VUK break above $4 with a vengeance it would be a switch candidate i.e. its already up +10% in 2022 while CBA is down over 6%, a performance differential closer to 25% will feel stretched in our opinion.

 

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Commonwealth Bank (CBA)
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