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!

Top Foreign Dividend Stocks Traded in New York

Mr.Hunkar, Your comment speaks volumes. Nothing is as impressive as a person who admits an error and thanks the person who corrects them. I will read your posts with a new enthusiasm.
I would also suggest that, in my opinion, buying both HSBC and Lloyds TSB , at current levels, represents an outstanding opportunity. I have held HSBC for ten years and have not sold a share. I recently established a position in Lloyds( $22.05 ) after waiting and watching , quite literally, for the last seven years. These are two companies an investor cannot own enough of.
Respectfully yours , Menachem Ben Yakov



On Sep 08 11:47 PM David Hunkar wrote:

> Guys - Sorry for the delayed replies.
>
> ignorant - Thanks for the note.Will be more specific and clear next
> time.
>
> User 138602 - RBS had a write-down of £5.9B due to exposure to the
> sub-prime credit
> crisis.In order to shore up its capital base the bank had a right
> issue for raising
> £12.0 B in JUne of this year.In addition the board had agreed to
> raise the Tier 1
> Capital ratio to 8%. The stock has fallen so much due to this nearly
> £6.0B loss and
> the ABN Amro purchase/integration expenses.
>
> In UK, the rights issue was made on the basis of 11 new shares for
> every 18 shares
> held at an issue of price just 200 pence which was about 46.3% discount
> to
> the closing price of 372.5 pence on Apil 21, 2008.As of June 9th,
> about 95.11%
> of the shares in the rights issue totaling about 5.8B shares were
> subscribed
> by investors.
>
> RBS has a dividend payout ratio of 45% in 2007.As per the board,
> after the rights
> issue the 2008 may be reduced.
>
> As the second largest lender in the UK after HSBC, RBS had to writedown
> this huge
> £6.0B loss. So when compared to LYG, HBC or Standard Chartered this
> writedown was high.
> Hence the stock is down a lot compared to peers.
>
> Hope the above helps.
>
>
> CARMEL - I included only the commons in this study.I should have
> mentioned this
> in the post.Preferreds are a different story. I will include then
> in future articles.
>
> Menachem Ben Yakov - Thanks for the info.I stand corrected.
>
> goatfarmer- Thanks for the suggestion. You idea will be implemented
> in the
> next similar article.Yes yields net of tax would be good to know
> but it
> gets complicated due to many issues.I can include any time of tax
> info.
> know for the mentioned countries though.
>
> Thanks everyone for your comments. It helps me serve you better.:)

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

Top Foreign Dividend Stocks Traded in New York

re: Lloyds TSB


www.telegraph.co.uk/mo...

Top Foreign Dividend Stocks Traded in New York

www.telegraph.co.uk/mo...


On Aug 31 04:46 PM Menachem Ben Yakov wrote:

> Lloyds TSB pays a 12.91% (TTM) dividend at an ADR/Share price of
> $22.05.
> Many folks err in computing the dividends on U.K. banks because they
> pay variable dividends. The computer generated stock screens take
> only a multiple of the last dividend paid and don't compute the yields
> properly.
> There is no substitute for pencil and paper and the writer should
> double check his facts before publishing incorrect information.

Dividends Show Differences Between Financials

To Lesers' on the money comment I would add the following factual information-

Since 1927, dividends have
contributed over 44% of the total
return of the S&P 500 Index,
with pure capital appreciation
accounting for less than one
third of total return and if those same dividend
payments had been reinvested, dividends would
account for over two
thirds of total return over the
same time frame.


On Aug 31 04:11 PM Leser wrote:

> I agree with jimsep and Menachem Ben Yakov.
> When purchasing a stock, look for the reasonable payout of -- what
> 25% or 50%, ballpark figure -- profits to the stockholder in the
> form of dividends (not so much buybacks, which I suspect may be to
> makeup for all the stock thrown at the executives of the company
> to cover their raiding the profit cookie jar.)
> It's old fashioned fiscal responsibility at running the business
> the company says it's in. Buying other companies should be judiciously
> done, not in a greedy way to spend the shareholders' money, as if
> the shareholder doesn't know what to do with it. He or she should
> use the dividends to buy more of the same stock. If the company is
> that good, the shareholder probably would.
> Of course, companies with high dividends and high debt--well the
> debt washes out the benefit of the current dividend, I would say.
>
> Yes, if we went back to the traditional high dividends--even after
> a 15 (or 20% taxation in the future?), it would be one way to know
> the executives of the company are really working for us. What a
> novel thought.
> Dividends, dividends, dividends. The proof is in the pudding.<br/>
>

Top Foreign Dividend Stocks Traded in New York

Lloyds TSB pays a 12.91% (TTM) dividend at an ADR/Share price of $22.05.
Many folks err in computing the dividends on U.K. banks because they pay variable dividends. The computer generated stock screens take only a multiple of the last dividend paid and don't compute the yields properly.
There is no substitute for pencil and paper and the writer should double check his facts before publishing incorrect information.

Dividends Show Differences Between Financials

Both HSBC and Lloyds TSB have committed to a progressive dividend policy and have adequate capital to maintain that policy. I applaud the write as the fundamental truth regarding any stock, that its worth increases regardless of market conditions if its dividend increases, is often ignored.
Great article and should be read by every investor.