HSBC Holdings P L C (HSBC)

British and Hong Kong bank and he is looking at buying it. Likes exposure to developing markets. High on his radar right now. He thinks it should be valued higher.

(A Top Pick May 2/13. Down 0.35%.) Hong Kong - Shanghai Bank moved their HO from London, England because more than half of their profits were coming out of Asia. The stock then started to trade like a Chinese stock. Has a great yield. One of the largest banks globally. He is still Buying. Very optimistic that when China starts to lift again, this will be a big winner.

Most of their business is UK, Hong Kong derived as well as an investment bank. One of the largest commercial banks globally. Have over $1 trillion in deposits. They have a loan/deposit ratio that is very low, which is a big advantage. Over the last couple of years they have really decided to focus on the areas of the business that are growing and have a meaningful contribution to the overall group. They exited a lot of the businesses in Canada in order to focus on the bigger whales in order to move the needle of the company. Pays a dividend yield of over 5%. Very high quality bank.

(Market Call Minute.) This is a stock that ought to have done a lot better given its exposure to emerging markets. Slow growth exposure in the UK and a big misstep in the US has held it back somewhat. Reasonable dividend, and are starting to increase it.

Global bank and its big earnings driver is effectively Europe and Hong Kong. Key driver for this bank is going to basically be Asia. Historically, like all trade banks, they have grown on the back of importing/exporting. This is ultimately moving back to its roots. Has underperformed, but like all banks it will be affected by higher interest rates. Performed very well during the recession. At this point it is good value and if it goes lower you could add more.

He is light in Canadian banks and has been looking at European banks and this one is included. An attraction is their exposure to China and other emerging markets. He likes buying things when other people don’t want to. English banking rules, but big exposure in emerging markets.

Trades below book, emerging markets exposure, but you are better off owning a US bank because there is more upside. BAC, JPM, GS, UBS even, for example.

(A Top Pick May 2/13. Down 1.68%.) Emerging markets just haven’t had a good year. Although some people think of this as a big European bank, over half of their profits are coming out of Asia. He is still buying. The operational side has been very solid. They continue to do all the right stuff. Yield of about 4.5% and is quite safe.

You are getting a piece of the global business. But there is not a lot of net growth compared to US banks. Not the ideal investment. Although it does have a stable dividend and there is probably not a lot of downside. You could buy below $48 for a trade.

(Top Pick Dec 13/12, Up 10.94%) Canadian banks had a good run, but this bank is trailing the group. The US banks are starting to do better. This one is well situated in Asia. He still likes it and would buy it. Thinks it will break out to the top, not the bottom.

More of an Asian bank nowadays. Reasonable valuation and high dividend yield relative to other global banks. A mega cap so you are not going to double your money. A core holding that will enjoy the growth in Asia over the next 5 to 10 years. A safe way to get Asian exposure.

European and global banks certainly looks like they will have some upside heading into 2014. You are getting exposure in a wide variety of European economy and emerging markets.

This stock has done nothing for a year but getting better positioned in Asia. The yield is safe and they are doing a pretty good job of keeping costs down. This is an opportunity that is being passed over and shouldn’t be. It is a pretty good stock with great management, over 50% of profits coming out of Asia. Largest stock in the Hong Kong market.

One of the few banks that did not blow themselves up. It is still below where it was after the recovery from the financial crisis. Stick with it. Decent yield. He would not move to a US bank.

Believes this was the only large cap British bank that did not cut their dividend. Had some struggles during the recession. Very good balance sheet. The UK is starting to exit the recession and, given the strength of the London capital markets, an increase in interest rates is going to create a lot of employment in London, which will be good for this bank. Also, exposed globally.