666. That's the sign of the beast. It's also representative of that big bank that is buying that other big bank's brokers. They put a sell out on HSBC. That's cool! I agree, except for the fact that it is over 6 monts late, nearly 60% in value decline later (not quite, but it does fit into the catchy title), and the last 6 is the IQ of anyone who leaves their money with these buffoons. I know that's a little harsh, but come on now. I warned explicitly (as in 20 pages explicitly) back in August. January 75 puts were trading at $6.99, now they are about $33.50. Whose money am I taking? Morgan Stanely clients, that's who! The same can be said for Bear Stearns, Lehman, GGP, GS and even Morgan - the riskiest bank on the Street. I had sell and collapse (that's right, I told you that Lehman and Bear would fail at least 3 to 6 months before hand see research & performance) calls on these stocks early last year while these brokerages were pushing buys and holds. Come fellas! Now that I think of it, buffoon is really not that harsh. For more on this, see Super Brokers form to push Super Broken products to make those with High Net Worth Super Broke!

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A glance at HSBC - Did the market miss this one?
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)

I have started looking into HSBC. The bank has significant exposure to risky assets and incurred huge losses in the personal finances division in the US last year. Despite this, there has not been mu
Monday, 07 July 2008

1. Part one of three of my opinion of HSBC and the macro factors affecting it
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
HSBC Holdings, one of the largest global banks, has remained relatively unaffected by the ongoing credit turmoil and housing downturn in the US until now. The bank has outperformed its peers, most of
Thursday, 14 August 2008

2. HSBC 1H 08 results update
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
Decline in net income HSBC’s net income fell 29% y-o-y to US$7.72 billion (or US$0.65 per share) in 1H 08 from US$10.9 billion (or US$0.94 per share). The bank’s prof
Thursday, 14 August 2008

3. LTTP (Late to the Party), pt 4
(Reggie Middleton's Boom Bust Blog/MyBlog)
From Bloomberg : HSBC Holdings Plc, Europe’s biggest bank, may seek to raise about $14 billion as increasing bad-loan provisions erode profit, CLSA Asia-Pacific Markets said.
Tuesday, 16 December 2008

4. The name brand contrarian plays have bore sweet fruit
(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
For those who were doubtful of my research and stated positions in the big name brand banks, I think a recap is in order. I have taken strong bearish positions on a few of the most revered name bran
Monday, 10 November 2008
Published in BoomBustBlog
Monday, 15 December 2008 23:00

LTTP (Late to the Party), pt 4

From Bloomberg :

HSBC Holdings Plc, Europe’s biggest bank, may seek to raise about $14 billion as increasing bad-loan provisions erode profit, CLSA Asia-Pacific Markets said.

The bank may raise funds through a share placement or a rights offering, CLSA analysts led by Bangkok-based Daniel Tabbush said in a note to clients today. CLSA cut its share price target for HSBC by 30 percent to HK$64, citing the risk that rising loan defaults in the U.K. and U.S. will hurt earnings.

HSBC, which earns more than three-quarters of its profit in emerging markets, has avoided the funding strain that forced Royal Bank of Scotland Group Plc and HBOS Plc into government bailouts. Tabbush said the bank will have to make more provisions in 2009 because 75 percent of its loans are in the U.S. and U.K., where customers are buckling under excessive debt.

“Every bank that’s raised cash has said its capital position is fine,” Tabbush said in an interview. “The regulators will probably require higher levels of capital and lower levels of leverage and HSBC will face the same issue.”

CLSA also cited HSBC’s failure to sell its headquarters in London for an expected $2 billion gain, together with the bank’s announcement yesterday that it lent $1 billion to clients who invested funds with the brokerage of Bernard Madoff, accused by regulators of using his investment advisory firm to run a $50 billion Ponzi scheme.

The bank also has clients in its “global custody business,” who have invested with Madoff, HSBC said in a statement yesterday.

Click to enlarger

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Imagine if you could have shorted HSBC early in the summer when it was trading in the mid '70' and 80's. Just imagine... If you read the blog.

A glance at HSBC - Did the market miss this one?

(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
I have started looking into HSBC. The bank has significant exposure to risky assets and incurred huge losses in the personal finances division in the US last year. Despite this, there has not been mu
Read more

Part one of three of my opinion of HSBC and the macro factors affecting it

(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
HSBC Holdings, one of the largest global banks, has remained relatively unaffected by the ongoing credit turmoil and housing downturn in the US until now. The bank has outperformed its peers, most of
Read more

HSBC 1H 08 results update

(Archived/Reggie Middleton's Boom Bust Blog/MyBlog)
Decline in net income HSBC’s net income fell 29% y-o-y to US$7.72 billion (or US$0.65 per share) in 1H 08 from US$10.9 billion (or US$0.94 per share). The bank’s profitability de
Read more

HSBC_Holdings_Report_04August2008 - pro

HSBC_Holdings_Report_04August2008 - retail <!-- -->

Published in BoomBustBlog

... but are resuming there slide downward. I have attached a (dated) spreadsheet that decomposes the US publicly traded Asian ETFs that may be of interest to those who want exposure to this sector but don't want to go through the trouble of individual stock. The sheet breaks down sector concentrations and top 10 holdings for each fund.

China

In
China, inflation declined from a 12-year high of 8.7% in February 2008
to 4.9% in August. Though inflation has come off highs, it is mainly
driven by food prices. The growth in food prices declined to 10.3%
y-o-y in August 2008 from 14.4% in July, keeping inflation high.
Inflation is likely to decline further as commodity and fuel prices
across the globe regress. The caveat is that we see China's growth
slowing much faster than the reprieve in inflation. See the
China-specific sections of The Butterfly is released!, Global Recession - an economic reality, and my China Macro update accented by media accounts.

pdf Asian ETF Spreadsheet (91 kB 2008-11-07 04:23:32)

Published in BoomBustBlog
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