Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. HSBCs international network comprises over 9,800 offices in 77 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. Companby has listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges. Through an international network linked by advanced technology, including a rapidly growing e-commerce capability, HSBC provides a comprehensive range of financial services: personal financial services; commercial banking; corporate, investment banking and markets; private banking; and other activities.

            Red = 25 day moving average.           Green = 200 day moving average.

Down with HSBC! I am not surprised its shares are reaching its low and maybe lower. I am currently a customer with them but am shifting my money out of this stinking bank. I was coaxed by them to open a high interest account and also arrange a transfer of a fixed sum from my saving account into the current a/c and thence into the high interest account. Signed all documents. I also made sure that I wouldn't go into overdraft. But to my surprise this was not arranged. And HSBC charged me for going into overdraft for 2 months. They still have not refund despite informing them.

Last year, I was suddenly charged administration fee of 19.99 per month for having a premier account without given any prior notice. This again was not refunded. The staffs were quite rude too.

I have already opened a HBOS account and I find the staffs are friendlier there and better still a higher interest rate.

STAY AWAY FROM HSBC.

Saga 'Share of the Week': HSBC


The dictionary defines contrarian as an investor who goes against the current consensus. This week, we could add HSBC investor to that description, after the bank issued its first-ever profits warning last week. Earnings forecasts have been cut and the shares are down. But, in true contrarian style, we think now is an excellent time to acquire HSBC. Heres why.

Last weeks profits warning centred on HSBCs 2003 acquisition, Household, a US loan provider. The bank stated that Households bad debts are likely to rise by around 20 per cent this year to $10.6 billion, as sub-prime less creditworthy borrowers default on their mortgages. One reason is interest-rate rises in the US; another is that HSBCs loan models appear to have underestimated the risk associated with some borrowers.

Markets and analysts have reacted strongly to the news. Yet we think investors are being too pessimistic. The mortgages affected are just one part of Households business, and we dont think the problems will spread to other areas of the loan book. Even though consensus earnings have been cut, Household still expects net profits of $2 billion in 2007. Yet at the current share price, Household is effectively valued at close to zero. This is unfair.



And there is nothing wrong with HSBCs fundamentals it has excellent cash flow, surplus liquidity and good strategic direction. We are keen on British large-cap stocks generally, and particularly like the banking sectors defensive qualities. The economic outlook has improved in the US, which should mean unemployment stays low. That will help Household too.



Even so, HSBC may not bounce back instantly, but we think contrarian investors should find this a very good time to buy. Our fair value estimate is 1100p, 18% higher than the current share price of 915p. HSBC could provide an excellent reward for investors who are prepared to swim against the tide.

Last Updated: 19 February 2007

Beware catching a falling knife wait until it hits its target wobbles and then pitch in, according to Peter Lynch anyway

I belatedly agree . The adverse US sub prime market needs to play out further . I think we shall see more bad news in this market that may prove to be a drag on the share price. These type of events have a tendency to get worse and spread further afield. However, HSBC is a battleship of a company and I would be happy to take a contrarian view and purchase the shares a lower levels.

sp 787p following hsbc's decision to incorporate 2 SIVs into its balance sheet. Sub prime outlook continue to worsen and credit squeeze showing no signs of let up. However, Company better placed than many to cope and weak conditions may well present Company with some cheap opportunities. The week US$ has a depressing effect on the quarterly dividend when converted to Sterling which Company may take into account on future paments. However, still waiting patiently for now to buy.

turnover to rise substantially this year. Gworth in Asia and will fuel higher growth and keep US out of the wood.

Higher prices for commodities mean higher turnover and more valuable assets. credit crunch is not going to happen.

Good cleanup.

of course HSBC is the one major bank that is definitely NOT looking for a bailout ...... say no more, say no more!

Doesn't mean HSBC won't have its share of bad debts as the worldwide recession takes hold, better to steer clear of all banks till the "dust" of the credit crunch has finally settled.

got in this morning and now banked a nice little profit, so no complaints from either this quarter or the bank manager

more than 10% down why, any bad news?.

more than 15% down in the same day, with no news why. other banks are down but in much less %.

I can only assume it is a hedge fund forced selling.

I don't believe HSBC is in trouble

it's to do with fears of the impact of recession etc in emerging nations and F/E where HSBC has large exposure

I guess so, thanks anyway for your input

Why should HSBC be any different to other banks following the credit crunch and don't forget their massive exposure to property lending in the far east especially in Hongkong.

because they were seemingly that much more prudent than many others ..... and that is propobly indeed the case, even if they are not immune

They weren't very prudent in the US when they were the first to buy a sub prime mortgage bank for us$billions.

So the far east property is the case, the share price is going down so much, any idea for how much will go down?. thanks.

HSBC falls after Goldman cuts to 'sell'

----------------------------------------------------------

Shares in HSBC fall 4.8 percent, making them among the top losers on the FTSE 100, after Goldman Sachs downgrades Europe's biggest bank to 'sell' from 'neutral' and slashes its price target to 650 pence from 950 pence.

The broker says in a report on Euoropean banks that recent actions by policymakers across the globe has eroded the outperformance of HSBC, which has relatively strong liquidity and capital position.

'Our fundamental view on the sector is that the focus will move from liquidity concerns to on balance sheet lenders as the credit cycle deteriorates, which is where our key concern exists for HSBC. If the market continues to focus on franchise strength and ignores underlying earnings trends, then HSBC is likely to continue to outperform,' Goldman says.

Trust GS to put the boot in..