rogerb, page-8

MYS getting hamered today down 2.5% in sympathy with the other banks. MYS have adequate capital on a risk adjusted basis but not nearly enough to remain competitive over the longer term.

The only buying opportunity here is if they get bought out by someone like Members Equity. Although one would need to wonder why ME would want to bolt on a Tasmanian bank who doesn't even hold market share in its home market.

From an equity price perspective, the only reason for buying is:

- good short term dividend yield, although this erodes their capital base in the long term, which is vital to their business
- aggressive broker strategy, although in the medium term this will crush them with non performing loans