National Australia Bank has been held back recently against all the other banks due to it recent attempt to takeover of AXA.
There is strong dividend yield at present being at 5.92% fully franked and a very attractive Price to earnings of 9.39 times. The business is cheap on a global basis and Australian Banks are listed in the top ten banks globally. The present market Cap of $51 Billion is larger than Citigroup.
The takeover of the wealth management business AXA is important for the bank long term due to the wealth management component that it will add to National Australia Bank's already growing wealth management business and will help diversify away from the margin squeeze in the lending area.
As per the attached chart the stock is attractive and is over sold in the short to medium term basis. It would not take a lot for the stock to turn around.
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