drp is on... go go go

Courtesy of egoli...

+ CBA
Three letters: “D”,”R”,”P”. This has GOT to be the most anticipated/telegraphed/well known “buyback” (and make no mistake, when it starts, you’ll understand why we think it is a quasi-buyback.) and it is about to start. Unlike most other listed companies, CBA actually buy the DRP stock on market. How many? For the August 2002 divie, some 6.1mn were bought over 10 days. For the the Feb 2002 divie, some 5mn were bought over the same period. This time, assuming take rates remain consistent, you’d think around 6.5mn will need to be bought. Needless to say, CBA does historically outperform the market during the DRP periods. Will it actually happen? Yes, and we confirmed that with CBA yesterday. When will it happen? The company said yesterday (when we rang them) that an announcement similar to one made in August will be made ‘early next week’, and we’d assume Monday or Tuesday. YOU HEARD IT HERE FIRST. WE FLAGGED THIS FOUR DAYS AGO AND TODAY, WE GIVE MORE DETAILS. Plenty of people made money of our idea last time…If you can stomach buying banks, and we’d understand why you wouldn’t, this is one you would be long some leveraged exposure…