Menachem Ben Yakov

Five Best and Worst Global Financial Stocks, YTD

It looks like a case of fraud to me when six weeks ago Lloyds TSB management could issue the following statement- " Against this backdrop, Lloyds TSB continued to deliver good growth momentum in all its core businesses and is well positioned for a lower growth environment.
Given this strong performance and our confidence in the Group's future earnings performance, the board has decided to increase the 2008 interim dividend by 2 per cent to 11.4 pence per share. This increase demonstrates the strength of the Group's business model, balanced with a level of caution on the outlook for the UK economy.'"
Now holders of common shares are in jeopardy. Lloyds it seems needs a government bailout that will suspend dividend payments to holders of its common stock for a minimum of five years. However the government, for its largess, will realize a 12% p.a. return on its investment.
Shareholders of Lloyds would be INSANE to vote yes on the proposed merger and I, for one, am looking for a good lawyer!

By How Much Have Foreign Bank Stocks Fallen?

This news item, just reported , is exactly the type of growth I was talking about in my last post...

www.guardian.co.uk/bus...


On Sep 02 11:13 AM Menachem Ben Yakov wrote:

> HSBC hit a low on Feb.11th and I doubled my position on that date
> at $69.50/ADR. The low on that day was $69.25/ADR. Those shares have
> subsequently paid dividends totaling $3.75/ADR. I do not expect the
> share price to return to those levels ever.
> In my opinion the ADR share price will close the year at or about
> $120/ADR. That price may seem overly optimistic to some but the fundamentals
> support my analysis. I also expect new revenue streams out of Korea
> and China as ventures in those areas begin to show results. It is
> also quite possible that there will be an announcement in the second
> quarter of 2009 that no further provisions for write downs will need
> to be made as they have been fully accounted for.
> Just my opinion of course and folks should do their own homework.
>

By How Much Have Foreign Bank Stocks Fallen?

HSBC hit a low on Feb.11th and I doubled my position on that date at $69.50/ADR. The low on that day was $69.25/ADR. Those shares have subsequently paid dividends totaling $3.75/ADR. I do not expect the share price to return to those levels ever.
In my opinion the ADR share price will close the year at or about $120/ADR. That price may seem overly optimistic to some but the fundamentals support my analysis. I also expect new revenue streams out of Korea and China as ventures in those areas begin to show results. It is also quite possible that there will be an announcement in the second quarter of 2009 that no further provisions for write downs will need to be made as they have been fully accounted for.
Just my opinion of course and folks should do their own homework.


On Sep 02 10:42 AM andyn wrote:

> with Britain weak, HSBC should go down to less than 70