HSBC Holdings

[Dod1010]

I am afraid I could not resist selling a few shares in HSBC this morning at £7.16. I have a small amount that I 'play' with, having bought them at £6.40 last month just before they went ex div so I will get the dividend on them plus a nice capital gain, all in a tax free environment. If they fall much under £7 I will probably buy them back because I like the dividend.

Does anyone know why they have risen nearly 5% this morning? Ever since I attended the AGM this year I have felt they were under priced. Maybe the market has just recognised that. I still have a large holding so I have not lost faith!

Dod

[spiderbill]

Morgan Stanley upgrade to 'overweight' seems to be the catalyst.

[idpickering]

Morgan Stanley upgrade to 'overweight' seems to be the catalyst.

HSBC boosted as Morgan Stanley upgrades to 'overweight'

HSBC got a boost on Thursday after Morgan Stanley upgraded the bank to ‘overweight’ from ‘equal weight’.

The US investment bank’s analysts also increased HSBC’s target price to 850p from 745p, saying they were expecting HSBC to have a strong capital surplus over the next three years, yielding as much as 20% during that time.

https://www.digitallook.com/news/news-a ... 46937.html

[idpickering]

I am afraid I could not resist selling a few shares in HSBC this morning at £7.16. I have a small amount that I 'play' with, having bought them at £6.40 last month just before they went ex div so I will get the dividend on them plus a nice capital gain, all in a tax free environment. If they fall much under £7 I will probably buy them back because I like the dividend.

Does anyone know why they have risen nearly 5% this morning? Ever since I attended the AGM this year I have felt they were under priced. Maybe the market has just recognised that. I still have a large holding so I have not lost faith!

Dod

Hi Dod,

May I ask what you're doing with that released dosh? Are you investing it elsewhere? They are my second single highest bet in capital value terms at 5.7% in value on my 28 share HYP.

Ian.

[idpickering]

No....I'm stepping away from the key board before I do something silly. HSBA are a mainstay in my HYP and there they'll stay. Stepping away.....

Ian.

[Dod1010]

Hi Dod,

May I ask what you're doing with that released dosh? Are you investing it elsewhere? They are my second single highest bet in capital value terms at 5.7% in value on my 28 share HYP.

Ian.

Firstly thanks Spiderbill

Ian
Well it is not a huge amount of money I have released, just under five figures actually. Still leaves plenty in HSBC. I sold some in February 20017 as I reported at the time when they hit £7. With the cash released then, I bought back in on 2 May at £6.412, getting 120 more shares for the same money and have now just sold them at £7.16. Nothing clever about it and totally not HYP. What will I do with the cash? Maybe buy in again or if not will top up one of my smaller holdings. Had they not had the boost this morning, I would have been perfectly happy to keep them for the yield.

I have not seen the analysis by Morgan Stanley but if we are confident that the dividend is secure, why on earth would they be yielding 6% in the current climate?

Dod

[OZYU]

Took the opportunity to reduce my HSBA holding which had become way too heavy, to 1.27* median, got 723.007p net of costs.

Re deployed in a few Petrofac, a new small holding for me (bit of a punt), plus planned GFRD top up as it was top of my list.

Ozyu

[idpickering]

No....I'm stepping away from the key board before I do something silly. HSBA are a mainstay in my HYP and there they'll stay. Stepping away.....

Ian.

That didn't last long. Being fickle and human I succumbed too, bringing HSBC down to average capital value weighting. That allowed me to bring BT Group and Greene KIng up to average cap weighting also.

Back to sleep now.

Ian.

[Dod1010]

Well done OZYU. Although I have been indulging in a bit of trading, it is with some logic. Had it gone wrong, I would have been happy to hold and now even after my modest sale today, I am still, at the current price for HSBC somewhat over two times my median so it was really a bit of rebalancing.

In fact, Unilever is my biggest holding closely followed by HSBC.

Ian, sorry if I have stirred you unnecessarily. Really the best policy is to ignore these market movements, but as long as we can justify them to ourselves...........

Dod

[idpickering]

Ian, sorry if I have stirred you unnecessarily. Really the best policy is to ignore these market movements, but as long as we can justify them to ourselves...........

Dod

Hi Dod,

No need to apologise sir. It was my decision alone. The truth is I've been getting frustrated trying to get a chance carry out the transactions that I have done today, due to distractions elsewhere in my HYP. Now I can truly ignore those three concerned today and move on.

Regards,

Ian.

[bluedonkey]

You chaps do like a bit of fiddling, don't you?

[monabri]

unlike myself who sold at 689p the other day! Timed to perfection.....

I don't seem to have grasped the principle !!

[77ss]

I am afraid I could not resist selling a few shares in HSBC this morning at £7.16. I have a small amount that I 'play' with, having bought them at £6.40 last month just before they went ex div so I will get the dividend on them plus a nice capital gain, all in a tax free environment. If they fall much under £7 I will probably buy them back because I like the dividend.

Does anyone know why they have risen nearly 5% this morning? Ever since I attended the AGM this year I have felt they were under priced. Maybe the market has just recognised that. I still have a large holding so I have not lost faith!

Dod

Aways gratifying to see a 4%+ rise in a major holding. However, I had a 'note to self' - 'overweight at 708p, but still giving 5.65%'. So I have obediently taken no action.

What a difference a year makes! I've gone from an XIRR of -7% to +11%.

Why the rise? US banks pass stress tests perhaps. With associated upgrades.

Not too bothered in the proximate cause/knock on effects, but enjoying the results.

[77ss]

unlike myself who sold at 689p the other day! Timed to perfection.....

I don't seem to have grasped the principle !!

Maybe not.

What did you move the proceeds into?

I am happy to tinker, but generally like to move up the yield curve, by at least 0.5%. Otherwise I see no point.

So I would have been looking for at least 6.25%. Not too many safe havens around at that rate!

[monabri]

I'm holding cash. I was anticipating a drop in HSBC to be honest..I got caught out!

[Dod1010]

I'm holding cash. I was anticipating a drop in HSBC to be honest..I got caught out!

Why did you anticipate a drop? The dividend is much more secure than say Shell and this is a very well capitalised bank with very conservative lending policies. As I said after the AGM, the Chairman confirmed several times that the dividend is sustainable. Furthermore most of its problems are behind it now and so why on earth is it yielding as much as it is? It is not to be compared with the likes of Carillion for example.

I am holding about twice my median even after my modest sale and so I will need to cut it again sometime but not at the moment as I would expect it to reach at least £8 before too long. I know this is the HYP Board and HSBC is a HYP share by any measure so I do not advocate trading even if I have been modestly guilty of that!

Dod

[Clitheroekid]

unlike myself who sold at 689p the other day! Timed to perfection.....

You and me both! I needed some cash for a property we've bought, so having left it to the last minute sold on Friday at £6.84. Today's rise has effectively added about £1,000 to the price of the property

Still, at least I came out with a profit, which is never to be sniffed at, together with some excellent dividends whilst I was holding them - no, I'm not even convincing myself!

I keep telling myself not to look at the price of a share that I've sold, as they have an unfortunate habit of rising substantially, as though my shareholding has been a heavy burden they've been carrying. But I can't resist doing it.

[77ss]

I am holding about twice my median even after my modest sale and so I will need to cut it again sometime but not at the moment as I would expect it to reach at least £8 before too long. I know this is the HYP Board and HSBC is a HYP share by any measure so I do not advocate trading even if I have been modestly guilty of that!

Dod

Indeed. OTBE, I shall not even be thinking about top-slicing until £8 - at which point the yield will have fallen to a measly 5%.

Of course, come the market crash, I may regret that attitude!

[Dod1010]

Clitheroekid

No need to fret. It is almost an immutable law that after I sell the price will rise, and after my modest sale, I will be delighted to see the price continue to rise. It is though a shame that you felt the need to sell HSBC to raise some funds. It is the same case as melonfool where she needed to raise some funds.

As someone said, rank your holdings, starting with the most desirable to the least, and sell the least desirable. I doubt that HSBC would be there on any grounds.

Dod

[Phileasrob]

No....I'm stepping away from the key board before I do something silly. HSBA are a mainstay in my HYP and there they'll stay. Stepping away.....

Ian.

That didn't last long. Being fickle and human I succumbed too, bringing HSBC down to average capital value weighting. That allowed me to bring BT Group and Greene KIng up to average cap weighting also.

Back to sleep now.

Ian.

Hi Ian,

I must say your posts do make me smile!

PR