HSBC Share prices are rock bottom - wise to buy?

Thrugelmir

Third quarter results for 2011 were below expectations.

http://www.hsbc.com/1/2/!ut/p/kcxml/04_Sj9SPykssy0xPLMnMz0vM0Y_QjzKLN4p38g4ASYGYxqb6kShCBvGOCJEgfW99X4_83FT9AP2C3NCIckdHRQDHlzJP/delta/base64xml/L0lDU0lKQ1RPN29na21DU1Evb0tvUUFBSVFnakZJQUFRaENFSVFqR0VKemdBIS80SkZpQ28wZWgxaWNvblFWR2hkLXNJZDJFQSEhLzdfMl9RT0EvMS9zYS4!?PC_7_2_QOA_cmd_search=

Banks in general are facing lean times. Margins are low and costs too high. The bubble days are over for banks. Once issues are finally resolved will become more like utility companies. Sound but boring.

gl196

What distinguishes HSBC from other banks in the UK (such as LLOY or BARC) is its global diversification, which can be (but not necessarily so) a good thing. It also benefits from a large deposit base and is thus less likely to become insolvent if/when Europe blows up.

HSBC is a low-beta stock and is more a dividend play. As another poster mentioned, diversification is essential - there is nothing worse than putting all your hard-earned money in a single company.

Also, HSBC shares on the Hong Kong stock exchange are inherently susceptible to a higher level of volatility, as Hong Kong equities tend to be more volatile than in the UK

sabretoothtigger

HSBC is still majority reliant on Europe and USA. I would suggest ownership through a FTSE tracker only.
They do have business in Asia but I expect them to register new losses and profits in equal measure, at least Lloyds is discounted towards that occurrance

qpop wrote: »

HSBC is still trading at a premium to tangible NAV - Although seemingly cheap compared to their price over the past year or two, they recently announced that bad debts in the US were causing a serious drag on their profitability.

Thats about it, more of the same

Masomnia wrote: »

And over thirty years gold is down after inflation, plus you'd have received no dividends... bye bye money indeed.

The adjusted high would be about 2250 and it'll converge with that as events progress further I think.
Most people dont buy at peaks unless it were to be a flat peak that lasted and I dont think it was. Gold isnt supposed to make a profit, just return to 100%.
Companies have grown more over 30 years, the surprising part is how little thats been true since about 1996

Ifts

View of one analyst - 'No excuse at all' for owning HSBC shares.....
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8885380/No-excuse-at-all-for-owning-HSBC-shares.html

p00hsticks

Deleted_User wrote: »

I'm not entirely sure if my mum knows enough about the stock market to be making such an investment but if theres advice from everyone here that I can pass on to her would be great.

You give the impression that this is her first foray into the stock market. If this is the case, then as a general rule, investing all your money in a single stock, whatever that stock might be, is a risky approach, as you are putting all your eggs in one basket - a tracker or fund containing a selection of different company shares is a safer approach.

agrinnall

A share is only at rock bottom when it hits zero, any share that currently has a value can drop further.