ASX Shares CBA class action

I can't understand how this type of thing benefits the share holders.

It costs the company money in legal fees and weakens it's reputation. Any money paid is coming from the company which as a share holder was yours anyway.

What am I missing?

 

It will be a interesting :AGM: on Thu, 16/11/2017 ...

 

Maybe the investors affected have sold their shares and couldn't give two hoots if the company tanks.

 

Most management don't care much about the smaller shareholders so a class action grabs their attention. In the short term the share price will take a further beating but it is the long term message.The benefit is that it sends a clear message to the management that you manage he company well or you will be punished.

 

Who benefits here:
1. Shareholders who sold (possibly)
2. Lawyers running the action;
3. Litigation Funders.

and above would not be in order who benefits most.

 

http://www.asx.com.au/asxpdf/20170823/pdf/43lnd233smc4w4.pdf

Once the Legal side kicks in, and the volumes it may take a while to recover with the way high -quality audit's work..

 

That's what I figured.

 

1 more very important interested party. Short Sellers.

 

CBA’s Smart Laundromat: The inside story of Australia’s biggest money-laundering scandal | Michael West

 

Is this a good time to purchase CBA? Is there another thread discussing this?

 

Has the full damage been priced in properly? I guess it can't be until the penalty is known precisely.

https://www.google.com.au/amp/s/amp...ay-price-for-its-silence-20170906-gyby60.html

 

What's looking cheap on the ASX?

..Caveat Emptor..

 

It will get hammered, already happening.

I am waiting for the big share crash, wake me up when it happens

 

What can be the scenario where they'll further benefit, if they've sold already ?

 

Maybe they bank on some of the shareholders to start selling and share prices going down so they can buy more at a lower price ?
Long term view.

 

Just a simple chart,and the situation may get a little more tragic ..

 

Thats just a one year chart. Tells us nothing.

Is your daughter still hanging onto her $95 CBA purchase on your advice or have you advised her to sell out?

pinkboy

 

Yes still holding just reinvesting the div's back into the washing machine ,not the best advice I gave our daughter back then but consider the opposite there was talk in several share blunder ego trading sites what,s happening now for months some investors can be obsessed and blinded by the raw possibility of an unlikely event while others want it to happen..

BTW- for the first time in the entire time iv'e held CBA I signed off on the reinvestment plan a few months ago ,and looking forward to the AGM --The only question I intend to ask is "WHY" ...while others want it to happen...

try this one..

 

1. Until CBA's actual penalty is known, the true value can not be calculated.
2. There may be early triggers that the price may fall, e.g. larger numbers of shorts coming into the market from those in the know.
3. It's times like these I am glad to be in ETFs/LICs. I don't need to worry about CBA as this what I am paying the LIC manager to do.