The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
HSBC, Bank of China’s Hong Kong unit and Hang Seng are the biggest mortgage lenders for unfinished residential projects in Hong Kong, with HSBC providing 25% of the loans in the market in June, according to mReferral. Bank of East Asia ranked 7th.
The reason for the weak performance of HSBC in the last months is, in my opinion, 100% related to the situation with Evergrande.
The question is how much money does HSBC have in fire ?
I remember back in July HSBC stopped some Mortgages already
https://www.bloomberg.com/news/articles/2021-07-21/hsbc-halts-mortgages-for-evergrande-projects-in-hong-kong
this was probably not a good decision. In the long term, the price of the share will be equal to the value of the company (1 symbolic penny). But in the short term, the price will now go up. For this reason I currently hold over 24000 shares and hope to be able to resell them to a fool later on, when the current death cat bounce comes to a standstill at prices of 150-175p.
As I have already described here several times, every halfway intelligent investor would have to see at first glance that BT is worth at most a symbolic penny. Nevertheless, the share is currently showing a certain strength. That's why I bought in at just under 110p yesterday, hoping that in a few weeks I'll find a stupid one to sell it to, or that the takeover rumor is actually true. BT also owes me almost 25%.
Yes, the patient BT investor (not the longterm bagholder) will be handsomely rewarded at some time.
I expect for example that BT will be good for a nice 20% rally from 50p to 60p.
So im patient and just wait for a filling at 50p ;-).
sorry to correct you its a "promised" dividend of 7.7p.
BT will never, mark my words NEVER EVER pay a single penny again. When companies like BT with a mountain of liabilities stop paying a divident its for eternity.
BT is still one of the most overvalued companies worldwide, as they are unable to earn a single penny and it only gets worse.
With 5G the mobile access will replace the wireline access. So new agile companies will take this market. BT will simple be forced to provide them their 5G infrastructure for some chump change that will be barely enough to pay the interest on the investments it made for this.
You, as BT investors, are and always will be just the useful idiots to subsidise this.
The issue is not related to the index the issue are the companies.
An index where the majority of companies in it is unable to earn a single penny after deducting "investments", costs and liabilities.
And instead of trying to get rid of low performing workforce, low performing management, stupid laws and regulations they all go the easy way by slashing dividends to use this savings for kicking the can (bankruptcy/nationalization) a few quarters down the road again.
since April BT is creating lower highs while MMs are still desperately trying to defend the INSANE inflated sp of more than 100p. There is no situation where a sp this high is justified.
SELL your BT shares and buy some quality stocks like Apple, Amazon, Tesla.
This spike to 110, based on fluffy speculations, will be the final run-up for breaking through 100p. BT is worthless therefore the SP will end today in red.
Nobody will takeover this company, maybe the Government for a symbolic penny.
Never, i advise you to sell your shares at this ridiculously overpriced level. BT currently trades at a valuation of over 10 Billion, which makes it THE most overpriced stock in history !
Dont get fooled by the bagholders at this board that are whining about the declining sp of their "Value-Stock".
There is no value in BT, there is literally more value in a farth of mine than in BT so ask yourself, "Would i spent 10 Billion for a farth from ThJones ?
If No, sell and stay away from BT, as this is a far worse investment !
if Yes send me a PM !
Do not fret, it was the best decision you could made !
Yes, you would be up 8% today, but i bet you would not have sold and realised the profit today !
Tomorrow it will be down 5% again and from this point onwards youre trapped !
90% of the guys on this board, sitting on huge losses have been honey trapped exactly this way, and to be honest i had been trapped the same way back in Feb when i thought wow 150p for BT (i think i bought for 152 something), defensive play, over 10% Dividend (yes maybe they will lower it soon, but hey even 5% would be good). And yes the very next days i was up a few % but guess what it just started to slide and i was trapped.
Actually i was still quite happy, because i thought i was very lucky as the whole corona situation accelerated and i was in a defensive stock, which should not be impacted so much so i decided to not sell after 10% loss like i always do...
At the end i got out with little over 20% loss at around 127p during the death cat bounce back in june . So BT was my worst investment ever in 20 years of investing and i take it maybe a bit too personal :-).
Just a free advise from my side, use the dead cat bounce today and SELL !
For traders it might even be a good chance to open a short position at around 107p-108p.
The fair value for this stock is 0,00000001p (actually it is 0 but normally those type of "rat-shops" get sold for a "symbolic" pound sterling.)
You Guys are funny.
FTSE is up 2%
BT is DOWN 3%
You should have taken my constant advises seriously that i gave for free over the last months and sell instead of being picky about my typos :-).
I know i cannot convince the old bagholders in this board sitting on 50-80% losses and dreaming of some imaginary value that might be hidden in this joke of a company. They still will be here in a few weeks when BT is at 50p.
But for every new investor that might think about trying some sort of bottom fishing.... DONT DO IT ! BT is WORTHLESS !
In my opinion this board is a live example of how "loosers mentality" is killing your success in investing.
We have a company which is not able and WILLING to create money for their shareholders. Its just a socialist vehicle, controlled by the government to provide telco infrastructure to the public at the cost of "stupid" investors.
The company has only WORTHLESS products (telco services).
YES telco services are worthless because they are easy to setup, even a man-trained monkey can setup a new TSP.
C´mon, your 10 year old kids can setup their own local ISP by placing a strong WLAN Router to the window.
The only complex thing is the infrastructure. But as BT is controlled by the government it has to provide its infrastructure (for which BT shareholders have invested hundreds of billion during the last decades) for almost free, the fees are so low they are not even covering a fraction of the maintenance costs !
Now the stock has closed below 100p, but what are the investors doing ? Instead of selling now as the stock is still FAR ABOVE its inner value of exactly 0 (ZERO) they start complaining the market is irrational and comparing BT to US-Tech.
Yes the market is irrational as it values BT still above 10 billion.
Apple, pays a Dividend - BT Doesnt.
Apple increases its revenue massively each single quarter - BT is shrinking.
Apple controls its infrastructure (it gets 30% of each App-Purchase and In App purchase) -- BT has to pay billions to build and maintain infrastructure and give it for free to the ever growing army of competitors
Sell the shares and buy something for the money you still get (Nice car, Furniture, Dinner) or hold to it and loose everyhing in the longterm.
How do you make money when you buy it today for 100p and sell it in 1-2 years for 25p ?
Tax return or something ?
As i said it will close below 100p today, this means the Weekly candle ends as massive red bar below 100p this will trigger a selloff to 50p in the weeks to come. There is no two ways about it.
3G was also the Future when BT decided to invest tens of billions into this, be it for licences or equipment. At the end they had to admit "BT warns: 3G billions may have been wasted" (https://www.zdnet.com/article/bt-warns-3g-billions-may-have-been-wasted/)
The exact same but worse will happen with their Fiber and 5G investments.
And when it comes to Fiber... OMG Fiber is the WORST investment you can make today.
First, its there for decades already so it far from being anything new.
Second and much more important 5G is CANNIBALISING Fiber. If you can get 10GBit/s why the hell burn Billions by bury hundreds of miles of cable. Focus on 5G and use a Mobile Access for the present W+ Services.
BT is
- a company that is not able to make profit.
- is regulated to the bottom and government controlled,
- has massive pension liabilities that are exponentially increasing due to low interest rates environment
- has to consistently invest tens of billions in ever new technologies and no chance to earn money on this (as it is outdated already before BT is able to even implement it)
- products are based on "all-you-can eat" flatrate concept so ever increasing service/value is not getting reflected in higher revenue.
- has to provide its infrastructure to competitors for almost free.
So there will be no future dividend/profit and therefore BTs value is exactly 0, its as black and white as this.
The directors are not buying because they think its a good investment they just have agreed earlier this year to convert a part of their salary into shares.
This is very simple, the market is always orienting on striking price marks. 100p is one of them, but as we all know this price is absolutely not justified and the next striking pricemark is 50p.
As BT is not a real enterprise at all (because BTs aim is NOT to make profit for their shareholders) . Its just a government controlled vehicle to provide Telco infrastructure for the public and use shareholders to subsidize the losses.