Member poll: Purchase HSBC Holdings or not?

Discussion of the proposed Cashback Investment Club

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Should we invest in HSBC Holdings if the purchase price is less than 450p?

Poll ended at Sat May 07, 2016 4:11 pm

Yes
13
93%
No, definitely not
0
No votes
No, the price is not low enough yet
1
7%
 
Total votes: 14

garindan
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Member poll: Purchase HSBC Holdings or not?

Post by garindan » Wed May 04, 2016 4:11 pm

Members,

Further to the previous thread there is support to hold a poll to see if the Club should purchase HSBC Holdings.

Banks have been struggling in the past few years as we are all aware. HSBC has seen a significant drop in value over the past year - over 1/3rd of its value. In the last month the bank hit a low point and recovered by ~9% in the few weeks that followed. Since then the bank has released quarterly results that significantly beat analysts forecasts.

ShareCast news:
HSBC's first-quarter profits fell 14% compared to last year but was better than analyst forecasts, with chief executive Stuart Gulliver expressed confidence that cost-reduction plans now under way will hit their target by the end of next year.
Amid a tough few months for the industry, the banking giant saw its profits before tax dwindle 14% to $6.12bn at the reported level, or 18% to $5.43bn on an adjusted basis.
Despite this the share lost ground as the bottom line showed a reduction in profits from last year, which has probably had an impact on the price.

The dividend for HSBC is currently very good at around 7%, though it may be cut at some point. Management have been reported to be against a dividend cut. Current share price is currently just over 5% above the lowest it has been since 2008. I think we have a strong opportunity here for a long-term investment, similar to RDSB.

If we were to invest in this share I would advise we:

- invest ~£600 of our kitty in the share
- did so on a dividend income basis and review should the dividend be cut
- consider selling the share should we see 20% gain on value, or at least lock in a significant gain and track the peak more closely
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Re: Member poll: Purchase HSBC Holdings or not?

Post by AAAlphaThunder » Wed May 04, 2016 4:26 pm

I voted yes as we need good long-term exposure to quality banking shares and curently HSBC are trading at the lower end of their historic value.
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Re: Member poll: Purchase HSBC Holdings or not?

Post by AAAlphaThunder » Wed May 04, 2016 4:31 pm

It would be amazing if we could get the vote concluded ASAP so we can take advantage of the low-price.
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Re: Member poll: Purchase HSBC Holdings or not?

Post by AAAlphaThunder » Wed May 04, 2016 4:33 pm

Additionally, Yahoo email is sending imutual PM emails to the SPAM folder.
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garindan
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Re: Member poll: Purchase HSBC Holdings or not?

Post by garindan » Wed May 04, 2016 5:04 pm

Not quite enough votes for 'yes' to buy the shares today before the market closed. Of course 9 might vote no tonight or some of you might change your mind...

Either way - if there is more support shown tonight I will log on tomorrow morning when the markets open to look at making a purchase if that's the correct course of action.
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Re: Member poll: Purchase HSBC Holdings or not?

Post by AAAlphaThunder » Wed May 04, 2016 6:45 pm

garindan wrote:Not quite enough votes for 'yes' to buy the shares today before the market closed. Of course 9 might vote no tonight or some of you might change your mind...

Either way - if there is more support shown tonight I will log on tomorrow morning when the markets open to look at making a purchase if that's the correct course of action.
Good move.
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Re: Member poll: Purchase HSBC Holdings or not?

Post by an6ypan6y » Wed May 04, 2016 8:32 pm

For me it's a lower price to buy option, the sector is in stasis because of Brexit and though HSBC are a class leader I see no evidence of any reason why they might outperform.
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Re: Member poll: Purchase HSBC Holdings or not?

Post by AAAlphaThunder » Thu May 05, 2016 11:02 am

Well done everyone for voting with speed and bringing the matter to a swift conclusion.

Furthermore to the unanimous decision, our chairman has purchased HSBC on our behalf. Full details of the purchase of HSBC can be found in this thread:

viewtopic.php?p=160918#p160918
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garindan
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Re: Member poll: Purchase HSBC Holdings or not?

Post by garindan » Thu May 05, 2016 11:13 am

underdog wrote:Well done everyone for voting with speed and bringing the matter to a swift conclusion.

Furthermore to the almost unanimous decision, our chairman has purchased HSBC on our behalf. Full details of the purchase of HSBC can be found in this thread:

viewtopic.php?p=160918#p160918
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Re: Member poll: Purchase HSBC Holdings or not?

Post by harinmenon » Sat May 07, 2016 4:24 pm

Sorry again for the delay, but my opinon was the same neverthless.

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