HSBC Holdings P L C (HSBC)

This is the one successful European bank that did not get bailed out by the government. Was very profitable because it had exposure in China and the rest of Asia. Have had a problem with not reporting on tax with their Swiss private bank. Banking is a really tough business, especially European banking. Tough regulations. He is going to continue holding his. Decent dividend.

They are still facing fines. They also have to meet new regulatory standards. He would not be running out to buy, but it is a big, ugly, global bank.

Stock was down 71% on the story that there have been nefarious things going on in their accounts. This is not the 1^st bank that this is happened to. Financials were already having a tough go of it. When it broke below $48 that was a clue that they were having troubles. It had touched close to that level several times in the past year. You can see this in a lot of the financials’ charts. If this can get above $48 and there is a good tailwind behind it with the rest of the market, it would be something to have a look at.

Not impressed with what has happened recently, but we haven’t seen interest rates rise in the US. This company gets 50% of its earnings from the UK and 50% from the Hong Kong market, so interest rates likely have to move in the US 1^st before we see them in the UK. If you are looking for a proxy in Asian growth and in a European recovery story, continue to hold this.

The issue is that they are a large international bank with a large presence in Asia. Their acquisition of Household Finance was a disaster. They are not making changes as fast as BCS-N. HSBC-N has gotten lost in their strategy somewhere, so he would prefer BCS-N.

Feels this is a proxy on China. If you looked at this in its home currency of pounds, it hasn’t had the slip off that it has had in the ADR in the last couple of months. The US$ strength has worked to weaken ADRs. He is going to be a bit more patient with this. It has a good yield. He is just waiting for the turnaround in China and he thinks it is still coming but is getting a little impatient with the lack of results.

(A Top Pick Dec 23/13. Down 2.85%.) Has been a bit of a disappointment in that it has a great yield, but they have been hit by the Hong Kong troubles. He was looking for more money flows to go in to China through Hong Kong, which they are, but are now going through Shanghai. He thinks this just needs to settle out. Well-run company. One of the largest wealth management firms globally.

An absolute giant. Predominantly Europe and Asia based. You can probably see a continued grind of this business. However, their target dividend payout is 40-60 percent and they are up against the top end of that.

This is falling back with a whole bunch of European banks. All the European bank stocks have been weak and could be an interesting buying signal. The chances are highly reliant on European government bank measures. There is a huge possibility of quantitative stimulus back into the 1st quarter of next year. An interesting Buy at these levels.

(Top Pick Sep 11/13, Up 1.85%) European banks look good here and he is buying this one for clients.

These all struggled during the financial crisis. This has struggled probably less than the European and foreign banks. This bank has a great position in Asia. Despite Asia’s issues at the present time for the growth rate is slowing, it is extremely well-positioned for the long haul. His entry point for the stock would be in the low $40’s. He is seeing better value in European financials and European banks.

Bank of America (BAC-N) or HSBC Holdings (HSBC-N)? He owns some of this, and is looking at it as a possibility for the rest of his accounts, as it gives European and Asian exposure. Bank of America does not interest him as he doesn’t care for their business model.

This is choppy and moving sideways. The bigger picture is still bearish. Chart shows a series of lower highs and a couple of recent lows that are higher, so it could be called a bit of a consolidation. Chart shows a triangle formation. You want to buy it on a breakout, which might be around $53. Be patient.

A really well-run bank. If you want a global bank that has good exposure to emerging markets, it is this one. One area where they don’t have good exposure is the US. This is a safe and stable investment. If you own this, you are only owning it for the 5% dividend yield.

Good bank. A lot of big international banks are trading at big discounts to the Book Value because investors don’t actually know what BV really is. This has a large exposure to Asia, and there is a lot of concern right now about loans, in China particularly. Well-run bank, but has had its problems like a lot of banks. Fairly good dividend.