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HSBC will start to pay a dividend next year which will help. In the 3 to 10 year time frame I would say it is a good buy. It will increase its divi and profits which obviously underpin the value.
In the short term it is subject to the UK USA China realtionship and threats. Ultimately I suspect HSBC will be forced to reloctae to Singapore, which would be no bad thing. Closely followed by Standard Chartered.
Personally I would rather be invested in the far East than the USA, UK, Europe.
If you can hold for 5 years I believe it will reward you. Shares always fall faster than they rise.
Fundamentals are still very good.
GameStop: Reddit users claim victory as $13bn hedge fund closes position, accepting huge losses.
A $13bn hedge fund has been left with huge losses after an army of amateur investors coordinating via social media pumped up the price of video game retailer GameStop tenfold in just a few weeks.
https://uk.finance.yahoo.com/news/gamestop-reddit-users-claim-victory-154801984.html
Personally I do not think it will have much affect either way.
The investigation has been going on for so long, the SFO has hundreds of ongoing investigations.
It is not like the SFO closing the investigation is going to result in billions of pounds of orders. I do not see investors sitting on the sidelines waiting for the SFO to close the investigation before investing. Where will the demand for the shares come from to drive the price higher?
UK Supreme Court to decide on SFO’s extraterritorial powers
https://hsfnotes.com/fsrandcorpcrime/2020/10/14/uk-supreme-court-to-decide-on-sfos-extraterritorial-powers/
2 found guilty 1 not.
https://yournews.com/2020/07/13/1728643/former-unaoil-managers-convicted-in-britain-of-iraq-bribery/
Couple of defendants are ill so are staying away.
Other than that it seems the jury is currently considering the evidence:
https://www.law360.co.uk/articles/1273069
The case resumed last month at the Old Bailey Court Number 1, bit ominous.
https://old-bailey.com/2020/06/25/whats-on-at-the-old-bailey-june-26-2/
I suspect that it will wrap up within the next 2 weeks.
The outcome will likely have an affect on the PFC share price.
What I think was dumb on SLA part was the capital distribution about 18 months ago.
It was expensive to do and I would have far rather they had reduced the share capital by £1.5 billion
I am not sure you are entirely correct on this.
If a share is deemed to be undervalued then it makes perfect sense for a company to buy back its shares.
It takes the pressure off having to generate so much profit to pay such a large dividend in the future.
It is a better use of money to buy back shares when valuations are deemed to be low.
SLA:
It needs to generate 500 million appox to pay the 21p divi.
If it can reduce the share capital at bargain prices it has the potential to lead to an increase in the divi.
There is no chance of petrofac ever suing or claiming compensation. The SFO are completely in the right. Remember that Petrofac staff have already admitted the crime:
https://www.theguardian.com/uk-news/2019/feb/07/british-former-oil-executive-pleads-guilty-to-bribery
It will be wrapped up in 2020. Petrofac will get a fine but unlikely now for further arrests. It is all tied into Unaoil which comes to court in Jan 2020. How bigger fine is the issue. My guess is 50 to 100 million.
https://uk.finance.yahoo.com/news/petrofac-considers-offshore-oil-asset-015915011.html
Malaysia has the best quality oil in the world.
The reason the SFO investigation is taking so long is that it is linked with Unaoil.
The SFO was nearly shut down for incompetance about 5 years ago. They have had a bit more success recently.
The Unaoil case comes up in January 2020.
The PFC case cannot be settled before.
Given the length of the investigation it is very very unlikely there will be any aressts now.
Almost certainly PFC will get a fine.
It just depends how much
The SFO is not allowed to damage the UK's PLC to such an extent they cannot trade.
Otherwise we would not have an SFO.
They are not allowed to damage British Industry. they are supposed to go after the perpetrators of sup[posed illegal acts.
I do expect the PFC case to be finalised within 6 months. Have to wait for the Unaoil case to complete.
https://uk.finance.yahoo.com/news/why-think-petrofac-pfc-share-142819436.html
The company is becoming increasingly profitable.
It has virtually zero debt.
It has a P/E ratio of 6
It looks like revenue is going to be up on last year.
It has offloaded all of its dubious ventures.
It has hardly any made up "intangible assets" on the balance sheet.
It has nearly 1 billion in cash in the bank.
Sooner or later it will have to increase the divi, or buy share capital which would be more sensible at these low prices.
IMHO Petrofac will pull through.
I would rather be in Petrofac than the wood group. They have billions on the balance sheet in inatangibles which I suspect will be written down in 2020.
The share price movement of Petrofac is little different to that of Haliburton or Schlumberger.
The whole sector is on a downer at the moment.
Who wants to be associated with oil!
Only when everyone has "thrown in their hat" will the price start creeping up.
IMHO: The SFO are waiting to see what happens with Unaoil. Case comes up in January 2020. If this case collapses or goes against SFO the PFC case will be dropped like a hot potato. If Unaoil lose the case then I suspect the SFO will fine PFC.
I doubt anything will happen with the SFO this side of Jan 2020. I doubt the fine on PFC would be dracconian anyway. They have no interest in killing a successful company.