Buy @ $3.16. STI -70. Latest Q208 NAV = $3.11, PE 10.x. NAV may provide the resistance for this banking stock. EPS may have peaked on Q407 (Annualised 35.42ct) and is now on the decline (Annualised : Q1 27.74ct ; Q2 28.17ct). I think it’ll drop to low 20s by Q408 and may even slip below 20ct if they do some aggressive write-offs (if recession and loans turn bad).
Yield would be 8.228% using FY07 DPS but this is not too meaningful as it includes Speicial Div (clear their S44 credits). If we remove the 6ct Special (Q307) and use Q208 (5ct) instead of Q207 (6ct), the yield would be 6.013%. Note that if Q3 and Q4 div were further reduced, the yield will drop further. But, my optimisitic projection is an FY08 EPS of 22-24ct and if they were to do a 100% payout, the yield will be closer to 7%.
Finally re-joins TC and David as s/h. 🙂