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Covid-19: HSBC / SC - Dividends & Results

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  1. #91

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    Quote Original Post:
    The BoE has real teeth, unlike Curry Lamb.
    Then they should really move back and be subservient to their real overlords.

    “HSBC should move its headquarters back to Hong Kong, so it can make the HKMA its primary regulator and does not need to scrap dividends. Local brokers and investors will continue to lobby the bank to relocate its base to Hong Kong and to reconsider its decision about dividend payments. It should at least consider paying the dividend in shares, so that it does not affect its cash flow,” said Gordon Tsui, chairman of the Hong Kong Securities Association.
    https://www.scmp.com/business/compan...-if-they-moved

    Anyways .. don't with my day's quota of shitposting..

  2. #92

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    To move or not to move aside..
    I really don't see what good can a case like this serve to shareholder..
    whether the shareholder win or lose or forces hsbc to give this particular dividend or not to give, on the overall it will not be a good deal.. they will be footing the legal fees for both sides of the case, and if the bank loses the case changes are the reputation impact will force the share price down further.

    Now without giving the dividend the money sits inside the bank and the NAV of every share remains higher than giving out the dividends.

    Maybe what they can try is to force the bank to cut 3% of cost (e.g. dont pay the executive and the staff half a year salary, etc)... but certainly a case on paying of that dividend will not be that economically meaningful.


  3. #93

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    Quote Original Post:
    To move or not to move aside..
    I really don't see what good can a case like this serve to shareholder..
    whether the shareholder win or lose or forces hsbc to give this particular dividend or not to give, on the overall it will not be a good deal.. they will be footing the legal fees for both sides of the case, and if the bank loses the case changes are the reputation impact will force the share price down further.

    Now without giving the dividend the money sits inside the bank and the NAV of every share remains higher than giving out the dividends.
    Totally agree for the average buy and hold retail investor (who didn't sell after ex-date), fighting to receive the dividend or not at this point is economically meaningless and stems from the common misunderstanding we've talked about that sees a dividend somehow as free money independent of stock price. But it's analogous to making a big fuss whether to receive 50 cents as two quarters or as five dimes.

    But it most certainly has immense impact on those who sold shares post ex-date and before this BOE debacle though, relying on the dividend being paid as declared. I can only imagine the carnage on those trading or market making on options and futures where the dividend was priced in for the proportionate price drop.
    shri and traineeinvestor like this.

  4. #94

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    What gets me is that the retail investor lobbying group has said, as a concession, if they can't pay the dividend then HSBC should give everyone additional shares to make up for it.

    Not sure if they've thought that through.

    shri, cookie09 and traineeinvestor like this.

  5. #95

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    This basically summarises why one should have a balanced, well diversified portfolio, rather than relying on one stock.

    What may have been the "best" stock a decade ago may no longer be the "best" stock now and in the future.

    traineeinvestor likes this.

  6. #96

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    Quote Original Post:
    What gets me is that the retail investor lobbying group has said, as a concession, if they can't pay the dividend then HSBC should give everyone additional shares to make up for it.

    Not sure if they've thought that through.
    you can, but there is no real economic impact to giving shares or not.. giving shares just mean if you have originally 1000, now it becomes 1010... the NAV of the total 1010 shares is same as the NAV of the original 1000 shares. just some feel good factor.

  7. #97

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    Quote Original Post:

    But it most certainly has immense impact on those who sold shares post ex-date and before this BOE debacle though, relying on the dividend being paid as declared. I can only imagine the carnage on those trading or market making on options and futures where the dividend was priced in for the proportionate price drop.
    its not just derivatives on the HSBC/HSBA shares..
    if you do a HSI index derivative you need to do all kinds of adjustment as well.. makes it tedious.

    the derivative market is complicated some are rules some are norms.. so maybe we will see some legal cases flying around on this... let's wait and see

  8. #98

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    regional monetary authorities taking note and following suit https://www.koreatimes.co.kr/www/biz...26_287464.html


  9. #99

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    BTW Motley Fool is suggesting Hang Seng over HSBC as a long term stock.


  10. #100

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    Quote Original Post:
    BTW Motley Fool is suggesting Hang Seng over HSBC as a long term stock.
    What's their reasoning - why is Hang Seng inherently better managed / profitable than HSBC?

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