https://www.stockopedia.com/articles/brokers-bullish-on-boohoo-shares-121078/
Mainland Chinese investors have been buying Hong Kong-listed technology and bank stocks. The latter bet looks harder to justify.
https://www.wsj.com/articles/the-curious-popularity-of-chinas-banks-11586345800
HSBC has CASH ON HAND of 249.67B up 45.93%
https://www.google.com/finance/quote/HSBA:LON?sa=X&ved=2ahUKEwifoK7Z5c_rAhVIhXIEHQV1C5gQ_AUoAXoECG4QAw
It has made for a disconnect between the political and the financial realms. Many observers focus on the decoupling between America and China. Yet for those managing the trillions of dollars that flow through global markets every day, the main trend looks more like coupling. Consider these moves by investment and commercial banks in the past half-year alone. Goldman Sachs and Morgan Stanley took majority control of their Chinese securities ventures. hsbc acquired full control of its Chinese life-insurance venture. Citi received a coveted custody license to serve institutional investors in China. Among asset managers, BlackRock received approval to sell its own mutual funds in China and Vanguard decided to shift its Asian headquarters to Shanghai.
https://www.ft.com/content/abbbfcec-736c-47ba-b106-b1bdafebd099
But does it mean HSBC stock is undervalued? Sure, it does. Trefis estimates HSBC’s valuation to be around $26 per share - about 20% above the current market price - based on an upcoming trigger explained below and one risk factor.
The trigger is an improved trajectory for HSBC’s revenues over the second half of the year. We expect the company to report $52.5 billion in revenues for 2020 – lower than the figure for 2019. Our forecast stems from the belief that as economic conditions have started to recover in Q3, the bank’s performance will steadily improve. Further, the easing of lockdown restrictions in most of the world is likely to help consumer demand, benefiting the overall business scenario. Moreover, HSBC’s Asia banking business has remained robust, with the bank reporting a profit of more than $7.3 billion in YTD 2020. The bank’s investment banking operations have driven positive revenue growth in Q1 and Q2 due to higher trading volumes, with the bank’s trading revenues surging by 35% in the first half of 2020 as compared to the year-ago period. On similar lines, HSBC’s advisory and underwriting fees saw significant growth in the first half of 2020 due to a jump in debt underwriting deals after the Fed stimulus. This has partially offset the impact of weak revenues in other segments. While we expect the trading income to drop in the subsequent quarters, it is likely to be still higher than the year-ago period. Overall, we see the bank reporting an EPS in the range of $1.02 for FY2020.
Thereafter, HSBC’s revenues are expected to improve to $53.7 billion in FY2021, due to an increase in retail revenues, partially offset by a decline in sales & trading revenues. Further, the net income margin is likely to grow as compared to the previous year due to a decline in provisions for credit losses, leading to an EPS of $1.91 for FY2021.
Finally, how much should the market pay per dollar of HSBC’s earnings? Well, to earn close to $1.91 per year from a bank, you’d have to deposit about $191 in a savings account today, so about 100x the desired earnings. At HSBC’s current share price of roughly $22, we are talking about a P/E multiple of just below 12x. And we think a figure closer to 13.5x will be appropriate.
https://www.forbes.com/sites/greatspeculations/2020/09/01/hsbc-looks-undervalued-as-asian-economy-gets-back-on-track/#64a9461c7679
https://www.statista.com/statistics/264905/top-10-banks-by-market-capitalization/
3rd and final stage in USA for Oxford Vaccine:
https://www.youtube.com/watch?v=7SRs-BGDnGw&fbclid=IwAR0XH5wBcoO-lX0_uHfukYrTpjlYv5S8Yi5xNqP6q5UYRL4BjkJWg5huZYw
3rd and final stage in USA for Oxford Vaccine:
https://www.youtube.com/watch?v=7SRs-BGDnGw&fbclid=IwAR0XH5wBcoO-lX0_uHfukYrTpjlYv5S8Yi5xNqP6q5UYRL4BjkJWg5huZYw
Due to Oxford & Astra Zeneca vaccine entering 3rd stage and looking promising, I'm guessing that by January (new year and such) and possibility of vaccine, we can see a return to normal early next year. Bookings for next year are already up as the promise of a vaccine is on its way, and I confidently believe that we could have the vaccine ready early next year. This would cause the share price to rocket. China is already looking like its near enough back to normal.
https://www.google.com/finance/quote/BOO:LON?sa=X&ved=2ahUKEwiK8ZCK3M_rAhXFg3IEHRhnBxgQ_AUoAXoECGMQAw
Q4 2020 Year/year change
REVENUE
- -
** NET INCOME **
17.06M up 25.09%
DILUTED EPS 0.01 no change 0.00%
NET PROFIT MARGIN 5.09 down -13.87%
** OPERATING INCOME 23.16M up 33.44%
NET CHANGE IN CASH 16.03M down -5.67%
** CASH ON HAND 245.45M up 24.04%
COST OF REVENUE 155.15M up 46.93%
Key stats
PREVIOUS CLOSE GBX 295.00
DAY RANGE GBX 292.40 - GBX 310.70
YEAR RANGE GBX 133.10 - GBX 433.50
MARKET CAP 3.74B GBP
VOLUME 9.65M
P/E RATIO 55.53
A lot of investors use A.I. software that monitors markets and looks for trends. If there is a sharp fall in US markets, it makes sense to sell UK stock. Falls in US markets often drive down shares in other markets. In this case though a lot of investors have initially just panicked, thinking markets are going to fall but overlooked that it was just tech stocks that triggered the sell off's. The tech sell offs are due to profit taking and a correction that was due (heard it on Ian King - Sky News Live - YouTube). As boohoo is not a tech stock (like Apple or Tesla) we can assume its business as normal. Possibly as Investors sold stocks as a precaution, not knowing the reason for the drop, they were just playing it safe. The News has spread that it was tech stocks so panic over. Shares might continue to drop in those companies, as profit continue to be taken but Boohoo is not a tech stock its retail, so should be OK.
https://finance.yahoo.com/news/did-underlying-business-drive-boohoo-122242747.html