HSBC 3Q Earnings Release, posted on Company News.

[Arborbridge]

However, looking at the number of shares I hold in HSBC and the effective loss of a 10 cent dividend, I'm sort of swinging to Pyad's view in terms of how much nicer the 10 cent per share divi would have been in my pocket.

[expletive acronym deleted] if you want 10% in your pocket why don't you just sell 10% of your shares then? It makes not the slightest difference where the 10% comes from.

GS

I think you just answered your own question: because the trading costs would make it not worthwhile.

PYAD is correct for an income investor, and Dod is incorrect, as far as I can see. I doesn't matter whether the amount is small - 10 cent or whatever- it is still an income lost which could have been paid. And the ones who will benefit most in £ or $ will be the big institutional investors - mates to the top people in any large corporation and this is the basis of pyad's remark. Probably not too far off the mark and I certainly wouldn't assume HSBC is entirely innocent, so I would regard the comment as unproven and unprovable rather than scurrilous.

Arb.

[Dod101]

However, looking at the number of shares I hold in HSBC and the effective loss of a 10 cent dividend, I'm sort of swinging to Pyad's view in terms of how much nicer the 10 cent per share divi would have been in my pocket.

[expletive acronym deleted] if you want 10% in your pocket why don't you just sell 10% of your shares then? It makes not the slightest difference where the 10% comes from.

GS

I think you just answered your own question: because the trading costs would make it not worthwhile.

PYAD is correct for an income investor, and Dod is incorrect, as far as I can see. I doesn't matter whether the amount is small - 10 cent or whatever- it is still an income lost which could have been paid. And the ones who will benefit most in £ or $ will be the big institutional investors - mates to the top people in any large corporation and this is the basis of pyad's remark. Probably not too far off the mark and I certainly wouldn't assume HSBC is entirely innocent, so I would regard the comment as unproven and unprovable rather than scurrilous.

Arb.

You people cannot see past income. HSBC is reducing its capital base because it is now a smaller company. End of.

Dod

[Arborbridge]

You people cannot see past income. HSBC is reducing its capital base because it is now a smaller company. End of.

Dod

Well, this is the HYP board, and since HYP is all about income it isn't surprising!

[tjh290633]

My thoughts are that an invitation to shareholders to tender their shares is a much better way of returning value.

Please excuse my ignorance Terry but what is this mechanism of which you speak? Is this something which goes by another name that is more familiar (well at least to me), or, is this perhaps something that doesn't happen often such that youngsters (61) like me wouldn't have seen it, or, something else?

Chris

It just so happens that First Group have announced a Tender Offer today, see https://www.investegate.co.uk/firstgrou ... 0000PA783/

They have the right idea.

TJH

[Gengulphus]

It just so happens that First Group have announced a Tender Offer today, see https://www.investegate.co.uk/firstgrou ... 0000PA783/

As Firstgroup was once a reasonably popular HYP share (*), albeit about a decade or more ago, and some HYPers don't tinker at all, I've started a thread where discussions of this tender offer from a practical HYP perspective can take place without being about a completely different company than the thread title indicates.

(*) Evidence that it was once reasonably popular can be seen in https://web.archive.org/web/20161126063 ... sort=whole.

Gengulphus