HSBC Share Price - Where is it going?

SecLender

I just upped my holdings of HSBC. Had to sell some other shares to do it but the price and dividend were too tempting.

gt94sss2

bigadaj wrote: »

The uk is a developed market with low growth, and the retail banking sector is competitive and low margin, it's their overseas and particularly Asian markets that are condieereed valuable by many.

For HSBC, the UK and Hong Kong are both considered their two 'Home Markets'.

There was a rumour in December that HSBC might sell around 30% of its UK operations in order to make its life easier re: regulation - after all Santander is going to do that to their UK operations.

However, HSBC quickly said they were not and that UK/Hong Kong make up 50%+ of their profits. Apparently on some measures HSBC UK's operations are the profitable of any of the UK banks.

Regards
Sunil

planteria

good posts. i shall be watching with interest. good luck SecLender.
currently back up above £6, at 602.2p.
personally, im hoping they drift down to 550ish in time for me to buy around 1000 shares;)

dealsearcher

I wouldn't wish a fall to 550p on any existing investor. A figure that low would mean all short term investors would be out and many long term investors as well.


Yes, China is a problem but HSBC can adjust it's business there and it also has business in the rest of the far east as well as the UK. It also pays a good dividend so investors will come back in with the current low price for future dividend.


Many investment funds have large holdings in HSBC, especially in their growth funds. They may have pulled out short term but will be back for the next dividend and will not leave it until the price has already risen, if they have any sense. And it's the large investment funds that really drive the price.

planteria

dealsearcher wrote: »

I wouldn't wish a fall to 550p on any existing investor. A figure that low would mean all short term investors would be out and many long term investors as well.

i wouldnt wish it 'On' them either... but it would be a good opportunity, you could argue, to buy some more.

dealsearcher

And now the banks are being sued in the USA over Libor rigging ...


It's about time someone went to prison otherwise this is not going to stop. It amounts to criminal activity when people are being defrauded by having to pay too much for a bank service.


http://www.bbc.co.uk/news/business-26584942


But if they get fined the effected people will not get any money back. In fact the fine will come out of bank profits which will then have to be topped up by more customer charges. It's about time the responsible people were dealt with properly with any bonuses clawed back and fines imposed on those responsible.

Thrugelmir

planteria wrote: »

i don't see that happening. do you?

Actually yes. BOI are setting up the their UK operation to be standalone, Santander likewise. Days of globalisation in the banking sector are over.

planteria

but to float it off, as a separate entity?
do you think it will become Midland Bank again?

dealsearcher

This Motley Fool article is pretty much on the money, except for looming interest rate rises. I can't see that happening for a while yet.


http://www.fool.co.uk/investing/2014/03/17/with-rising-interest-rates-looming-should-income-investors-dump-national-grid-plc-in-favour-of-hsbc-holdings-plc/


So why is the share price at all time lows?


Ukraine? Has HSBC got any exposure to Ukraine? Or any significant exposure to Russia?


China? So China's GDP growth is reducing from 7.5% to 7.2%. Is that really a problem? The rest is no more than China has always been. Shadow banking? No change there. Any credit problems can be made to the banks advantage.


Libor court case in the USA? All the banks are effected and it's a known factor with the banks nowadays. Just another banking scandal.


So what is really holding this share price down at almost all time lows?

Thrugelmir

dealsearcher wrote: »

Libor court case in the USA? All the banks are effected and it's a known factor with the banks nowadays. Just another banking scandal.


So what is really holding this share price down at almost all time lows?

Rumour is that F/EX trading scandal is going to be even bigger than LIBOR. So doesn't auger well for future years profits.