tag:blogger.com,1999:blog-8299436555685260398.post5471775324607283874..comments2023-10-30T21:19:26.074+09:00Comments on The Fundamental Analyst: REF Profit DowngradeThe Fundamental Analysthttp://www.blogger.com/profile/16783431753822952360noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8299436555685260398.post-42812701916144744992008-12-21T10:54:00.000+09:002008-12-21T10:54:00.000+09:00Hey Deano,The calculation for REF is a fairly simp...Hey Deano,<BR/><BR/>The calculation for REF is a fairly simple one because I have assumed all profits will be paid out as fully franked dividends. Thus you can think of the company in the same terms as a bond throwing off coupon. <BR/><BR/>The caluclation is then Return On Equity / Required Return (or discount rate x Equity per share. So 180% / 15% x $0.13The Fundamental Analysthttps://www.blogger.com/profile/16783431753822952360noreply@blogger.comtag:blogger.com,1999:blog-8299436555685260398.post-70094159901633561972008-12-19T09:13:00.000+09:002008-12-19T09:13:00.000+09:00So how did you arrive at your $1.56 ?Im a bit of a...So how did you arrive at your $1.56 ?<BR/>Im a bit of a mug punter when it comes to the share market. However bonds are another matter, im in on a conference call right now with Deutsche who are explaining why they didnt call their sub issue. ( sub spreads on bank paper have pushed out massively as a result, many people are nervous other banks will follow the DB lead ) First time ive heard insto investors swear at an issuer on a conference call - cant remember an investor backlash like this. A lot of people are pulling all call funds out of DB now and any further debt issues will be nigh on impossible to get away unless ridiculously wide. Some are calling this to spell the end of DB in Australia, given their presence here was debatable anyway.Anonymousnoreply@blogger.com