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pan
''Good profit, but out too soon''
HSBC is my biggest holding in my portfolio.
Today's sale represented about 2% of my shares.
I bought at about £3 and under 290p in September 2020 and a number times at higher levels since. Prior to today, my last sale was also at over 550p on 3rd Feb 2022.
I still have 'excess' shares to sell at higher levels.
I will always have HSBC shares.
I have been a shareholder for many years having worked at HSBC for many years.
I now receive a very good pension from HSBC.
Good profit, but out too soon i fancy, loads more to come.
at over 553p the shares I bought at under 440p on 25th Oct 2022
driftking27
“Would it not be better to consider raising dividend” No! Raising the ordinary dividend makes it harder to judge operational performance between years. It’s far better to return surplus capital by way of a special dividend making it easy to compare the ordinary dividend progression.
“..Critics say that companies that issue special dividends may be signalling that they have nothing better to do with their money..” Indeed HSBC probably don’t have anything better to do with the money. That is they will probably have difficulty finding new business within both their profitability and risk appetites. Remember that the other banks are also chasing this kind of business!
“Reinvestment even in EM would be better idea during these times”. While this may seem to be a good idea for ordinary companies it is definitely not the case for banks and insurance companies which have to hold regulatory capital against the business they write. The financial crisis showed that large amounts of formerly profitable business could turn into massive liabilities and incur huge losses if the regulators change their risk weightings.
If they can’t find the business with acceptable profit and risk margins then it is far better to return the surplus cash to shareholders by way of special dividend or buyback than build up a potential time bomb.
Hi, I am thinking of investing in HSBA, I have stumbled across the RNS. Did you need to be holding shares back in July Oct 2022 to qualify for the special dividends ? Or is this to be confirmed in the future and future share ow ers will qualify ? Many thanks
that depends on the business, what is a bank or insurance company better to put it's money when it can only invest or leverage itself so far and stay 'safe'?
If the shares seem cheap then buying back shares is better for anyone who pays dividend tax (esp the joke reduction in this next year to £1k and year after to $500 b4 paying tax) but if price is high then returning money to investors seems a better option then gambling it.
I would get all excited with the SD.
I’m my view companies that give out these so called Special Dividends show lack of direction.
Would it not be better to consider raising dividend
“..Critics say that companies that issue special dividends may be signaling that they have nothing better to do with their money..”
Reinvestment even in EM would be better idea during these times
GLA
best investments of 2022:
OXY
ABBVIE
IBM
AZN
VERT
GILD
what’s yours?
This morning Noel Quinn gave an interview at the Redburn CEO conference and made many interesting points. A link to the recording is given below.
On the sale of the Canada business he said the goal was to have it completed by the end of next year. On the use of the capital he said that it is likely that they would retain some for growth but return a good chunk to shareholders by way of special dividend and/or additional buybacks over and above the buybacks from organic growth.
Ping An’s proposed breakup of the group would result in a material destruction of value. Noel has had no conversations with other shareholders who have expressed support for a breakup which would require regulatory approval in over 30 countries and 75% shareholder approval. However he acknowledged that Ping An made some very valid points e.g. in the last 10 years cost efficiency has been too high and ROTE too low but these are being addressed.
https://wsw.com/webcast/redburn6/hsbc/2140160
Yes jet, part (or all) of that rise is seen today. But it doesn't explain why Stanchart has also had a good day. It's an even better "Buy".
The price, if at 3x , is very generous. RBC probably feel it gives them a very good exposure to the Hong Kong regional trade, because of the large (and wealthy) Hong Kong origin population in Canada.
Never been in a share that has declared a Special Divi. Does it work just like a normal dividend and reduce the share price?
If so, what is the benefit, does the price tend to rise until the Special Divi goes ex dev?
Thanks in advance.
Could see 1 billion in buy backs, like Av did. And get a big dividend as well.
£6+ special dividend.
What a difference a month makes eh. You can never tell whats around the corner where it comes to investing.
Cracker
Hsba motoring today cant find much news , pulling plug out now sold..https://www.reuters.com/world/china/china-reports-4045-new-covid-cases-nov-3-vs-3372-day-earlier-2022-11-04/
With inflation at 10% you will in reality be losing 4%.
Long term shares beat inflation by about 5%.
With a dividend of 4.2% at the current SP why would anyone gamble in buying these when you will shortly be able to get 5 to 6% risk free in a savings account?
I know there is a chance of capital growth but this could be a long way off & there is also a chance of capital depreciation as we enter recession. I would suggest the latter is more likely especially with the chance of a further bank levy in the UK.
True. There is quite a drag associated with the political situation in the east too. A big boost will be when Xi to abandons his zero covid policy. A bonus also if he also decides to play nice with the USA, which seemed unlikely to happen a few weeks ago though with the recent USA GDP figures I would hope that a few of his cabinet have started whispering, using the Taiwan situation as leverage.
I am happy to keep buying at these levels though.
Hsbc needs to move its listing to HK, will put 30pc on share price overnight, it makes no money in the U.K., tax levels in U.K. now insane ( and the country still broke ) and just being listed in self harming brexit basket case U.K. is dragging the share price down as foreign investors won’t touch sterling denominated assets. Move.
char333 you must be my alter ego as i share your exact experience.
I too bought at 525. So it could be my fault not yours!
With wealth taxes and windfall taxes on banks doing the rounds there is more to add to that spell.
Probably an easy target as it has billions and profits and money!
So lets take them away!
If i’m not wrong in saying, good profits, but when we have a recessionary backdrop that’s hitting banks most it doesn’t spell well for banks.
GLA
hi posted on wrong board on sunday. bought in here about 5 weeks back + since then down about 85 p. just my look. looks like a long wait back to my entry of £5 30. 6 months till divi. what with china leader doing allsorts, things sure dont look well atm. hope they revert to qaurterly divis. anyone with knowledge of my share buying will tell you, i buy they plummet. sods law .
Wander what GS view is now if GS?
There was no mention about the possibility of a quarterly dividend payment of 10c. . .
Fairly positive forward looking statement in the update.