Hsbc Share Discussion Threads

[impulse123] 24/4/2003 08:22

Will SARS affect HSBC as much as suggested?

[praipus] 12/3/2003 13:05

Even Sir Keith Whitson's sold 60,000 today!

[praipus] 11/3/2003 22:38

Yes.

Note 19 mill bought and 24 mill sold so there must be a few others with the same idea.

[merob] 11/3/2003 12:03

anyone shorting this stock?

[praipus] 06/3/2003 00:57

mikepearce45

What are your thoughts concerning the pension fund deficit which the press rumoured to be £3.25 billion?

[mikepearce45] 05/3/2003 18:29

Praipus


In a word, gruesome!. Not sure what the actual figure is or indeed whether the rumoured shortfall of £3.25Bn is before or after the £500m injection made earlier this year. I obtain some confort that the bank can afford to drip feed the fund over a few years, but nevertheless , any amount will come out of profits to the detriment of shareholders both now and for the future. I cannot make any comment at present as to what "pension holidays" the bank took advantage of during the boom years or what ratio of the shortfall can be laid at the feet of Gordie's taxation of dividends or what is attributable to the markets. It can also be argued that this liability is not immediately payable and is the estimated amount that would be needed should a + b + c occur. Hopefully the markets will recover within the next year or two when this deficit should reduce naturally.

It was also interesting to note that Keith W's salary increased by 40% last year i.e. his last full year of employment "....to compensate for losing out on a long term bonus scheme..." I thought that when someone retires, any bonus can only relate to the period of employment. When one leaves a job you are not normally credited with contributing anything after that time. Okay, some would say that any systems that an ex employee brings in will benefit the Company for years to come, but that could be argued as applicable to all employees. In KW's case he is of course on a 2/3rds final salary pension. If we take last years salary of £2.17m this equals 140% of his normal income which would have been £1.55m. His pension will work out at £1.44m i.e.he will retire on virtually the equivalent of his full normal salary and that assumes that he worked for the full 40 years necessary to qualify for the full 2/3rds pension which I think he did in all honesty. Wish I could retire on a full salary. I may be wrong but I think that Sir JB will shortly be due to retire so I think that with these two heavyweight pensioners on board, that the bank will ensure that the pension fund will survive.Cynical, who me?

[mikepearce45] 04/3/2003 15:14

dondee

Yes they, ie the Midland, screwed up big, big time with Crocker and yes it brought Midland to it's knees. HSBC came along and bought Midland dirt cheap and I mean dirt cheap. Also remember that it was Midland management that screwed up. Once HSBC arrived on the scene, these guys lasted all of 30 seconds and that was just time to fill their dustbin liners with their desk contents. HSBC are in a different league do not confuse the two.

[mikepearce45] 04/3/2003 15:07

Praipus

Within my suggested 2/3 year pre-recovery position, the shares will be volatile, yes, and could drop to or below the £5.75 level for short periods. Remember that HSBC is the second largest world bank and has a presence in some 100 countries, so as in a "well balanced share portfolio" their risks are well spread.Any problems , for example, in the UK - and heaven knows with Gordie's policies looking more suspect with every passing day, such problems are not far away, should be balanced by recovery elsewhere( e.g. the States where some signs of recovery are showing through) Also , the management are extremely shrewd, cunning and quite ruthless in carrying through their policies for new Companies, "Household Int.inc" won't know whats hit them once these lads get going. I know even the board say that the future is uncertain, but if it was that uncertain, why are they proceeding with the biggest purchase ever in HSBC's history and why do they continue nibbling away buying bits of this and that throughout the World. Mark my words , they know exactly what they are doing and once recovery starts, as it will do, the share price will reflect their quiet housebuilding while the rest of the financial world runs scared. Buy for the long term but as always DYOR.

[dondee] 04/3/2003 14:53

Erm, was it not the Midland Bank before it became (part of) HSBC, which threw away several HUNDRED MILLIONS or £ on the American CROCKER BANK? Before withdrawing and licking their wounds. I may be mistaken of course.

[praipus] 04/3/2003 14:00

Are your sure? Even the board said the future is uncertain!

Iraq, North Korea, UK interest rates, housing reverse, unemployment, pension defecits, demographic shift. This is a pack of cards on a shaky table sell IMHO.

[mikepearce45] 03/3/2003 18:58

Once the economy gets going(two/three years) these shares will rise rapidly and we could once again see an £11/14 price tag. HSBC seems to buy /take a stake in something almost each month - note also their expansion into China, an area they know almost better than any other financial institution. They are also pastmasters at squeezing every ounce of value out of their purchases and set a minimum return target of 20% on each purchase. Okay they have made the odd mistake(Argentina) but even that will come good eventually!

[praipus] 03/3/2003 17:21

The big drop is on 42 million sold today only 19 million bought sell sell sell

[asphyx24] 03/3/2003 15:49

merob how much time we talking about here? you mean somethign like postwar?

[merob] 03/3/2003 13:23

£7.20 - £7.60 max, medium term (give it a bit of time).

[asphyx24] 03/3/2003 11:50

I think if there is some reommendation keep a check out for any upgrade in recommendation

[mikepearce45] 03/3/2003 11:30

Figures are at the bottom end of expectations. Sir JB has also stated that "....pension provision and US retirement health benefits are likely to place a severe strain on future corporate profits". They have injected £500m into the pension fund. This comment plus the Iraq situation, it would need something a bit more exciting to attract buyers. Tuck some away in an ISA for good, long term gains.

[asphyx24] 03/3/2003 11:10

where are the buyers then?

[mikepearce45] 03/3/2003 09:11

Dividends to be paid quarterly from January 2004 - excellent news.

[asphyx24] 03/3/2003 08:13

Anbody wanna shed some lights on the results?

[asphyx24] 03/3/2003 01:25

Analysts forecast a 23% rise in profits due to a combination of lower bad debt provisions coupled with higher income

[asphyx24] 03/3/2003 01:18

another if you guys have notice it P/E is 14.57 P/E = Share price/EPS where is RBOS P.E is aroung 9-10 which took its time to rise on friday so i dont think HSBC might give us a rise we want anyone anna shed some light on it

[ya2000ss] 02/3/2003 20:55

and what about there bad bad bad loans all over the world?

[boram] 01/3/2003 14:53

HSBC Holdings, Finals are out on Monday 3rd.
HSBC is the latest of the major banks to report results and is expected to post a rise in pre-tax profit for the year. Investors will also want to see the progress of its controversial acquisition of consumer finance group Household.

[asphyx24] 28/2/2003 16:31

Analyst forecast predict a profi of $9.82 billion dollar up 23% from 2001 $8 Bilion