UK Banking Stocks

Investing
#1

This won’t get as much interest as insert meme/ev stock but lets discuss UK Bank stocks. Mix results today, UK centric ones down couple % so far but HSBC up.

Interesting that currently some uncertainty with Brexit deal and the finance/banking sector.

I currently have a HSBC position, and a smaller Lloyds one. HSBC because it is more international focused especially Asia and is shutting down/selling its less profitable ones like US market.

Lloyds to have some exposure to UK centric banks and counter balance the HSBC if issues in their business so bit of diversity.

I feel one catalyst will be once the banks introduce dividends (even if lower than previous levels), they already have green light to so i expect next 3-6 months they will.

#2

I have been watching HSBC and Lloyds. Dont hold either of them but see massive upside. Not sure what is holding me back from just opening a position.

#3

The way I see investing is medium to long term. So if u buy Hsbc now at 384 and it deeps to 287 u can buy cheaper and accumulate.
If it shoots up to 450 u can buy some more if you are in the up trend and sell in 550.

It’s up to you to make a strategy, you buy monthly same stocks, weekly.?
Put money to the side and have fire power or invest it all now, then if it deeps u just put bits from salary.

The hsbc and lloyds are cheap - 50% you can buy them and nothing will happen for 7 months then a rally of 1 month and then nothing for another 7 months.

The point I am trying to make is you can’t predict the market, nor should you try!
Just go with the trend and never ever have feelings the market does not know you.

#4

So for example you buy some now, and it drops no bother you buy some more or go with another stock.

If it goes up great, you can accumulate some.

They both pay dividend which is good if this is what you want.

#5

With HSBC I really only see about a 10% or so downside, but can happily weather a more significant one and buy the dips. But I see 30-50% upside within 1-2 years, plus in next few months dividend restart which will compound those gains.

#6

Look how far I had to go to find the support level for hsbc, and now the new resistance is just above.

Again if it passes it a rally, if it retreats it can go down again below 300.

Just don’t try to predict, look at what is happening and buy.

Buy according to your strategy.

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#7

I agree historycally it can have a rally soon.!

#8

There is a lot of Chinese money that could pour back into the stock too through Hong Kong, so for me there is a portion of a China play with this. HSBC themselves have turned focus more towards that market.

#9

If you want an outside the box thought, look at who has shares in Starling / Revolut and a likes.

CHRY performing well recently and has a stake in Starling, along with Transferwise. I think both could potentially fall under UK banking services?

#10

2019 data

Asia 49%
Europe 29%
North America 11%
Middle East and North Africa 6%
Latin America 5%
#11

Starling Bank is not yet listed on LSE but might be soon?

Yes Starling is promising and Transferwise as well, I wish they had rates as good as revolut.

#12

Why is Lloyds affected so badly when it caters to the domestic market? It doesn’t make sense to me. Especially as a retail bank with mortgages at a something year high.

#13

Part of the issue is just Brexit/Virus double whammy on UK economy. Then you also have very low interest rates so their margins on mortgages etc less good.

But equally I agree they should be higher hence why present a potential value play.

#14

Reinstatement of the dividend will surely increase the price. Plus from what I remember Lloyds faired better than most on the financial stress tests they conduct on the banks. Can’t see why this won’t get back to 60s minimum. I did average 31p sold at 36.6p tried timing market and bought back in at 37.6p :rofl::rofl:. Won’t be doing that again. Brexit uncertainty thought I could time it, maybe not.

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#15

The market will pay what it thinks the company is worth look at usa stock many companies have not had a profit in 3 years yet their stock has tripled…

#16

It’s not sustainable long term though, definitely indicator of a bubble.

Bitcoin to me is a bubble it has no intrinsic value of any kind and produces nothing. At least gold has uses and is tangible.

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#17

Completely agree with you on this. There are a lot of signs of a bubble happening right now when you’re talking about the valuations of some companies which in essence just have an idea but are worth several billion pounds.

The previous post is right for now though, the stock of a company is worth what people will currently pay. So there’s some FOMO buying, almost like a herd mentality, history says when the FOMO selling starts (if/when it does) it’ll go the other way a lot faster.

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#18

Definitely, keep buying value, GSK is and Aviva are still well priced Divi plays among others. I’m also looking Ted Baker.

Ted Baker market cap is around 200mil at the moment…sorted their finances through a RI 60mil net cash on their balance sheet and a brand that’s worth more than 200million IMO…

#19

Yes I ignore that rampant overvalued stocks, I am not a trader so for me its mainly buy and hold or buy and know a price target within few years at which I may sell or sell some.

#20

I invest and trade longer term (once price target hit)