HSBC Holdings P L C (HSBC)

Feels this is a proxy on China. If you looked at this in its home currency of pounds, it hasn’t had the slip off that it has had in the ADR in the last couple of months. The US$ strength has worked to weaken ADRs. He is going to be a bit more patient with this. It has a good yield. He is just waiting for the turnaround in China and he thinks it is still coming but is getting a little impatient with the lack of results.

(A Top Pick Dec 23/13. Down 2.85%.) Has been a bit of a disappointment in that it has a great yield, but they have been hit by the Hong Kong troubles. He was looking for more money flows to go in to China through Hong Kong, which they are, but are now going through Shanghai. He thinks this just needs to settle out. Well-run company. One of the largest wealth management firms globally.

An absolute giant. Predominantly Europe and Asia based. You can probably see a continued grind of this business. However, their target dividend payout is 40-60 percent and they are up against the top end of that.

This is falling back with a whole bunch of European banks. All the European bank stocks have been weak and could be an interesting buying signal. The chances are highly reliant on European government bank measures. There is a huge possibility of quantitative stimulus back into the 1st quarter of next year. An interesting Buy at these levels.

(Top Pick Sep 11/13, Up 1.85%) European banks look good here and he is buying this one for clients.

These all struggled during the financial crisis. This has struggled probably less than the European and foreign banks. This bank has a great position in Asia. Despite Asia’s issues at the present time for the growth rate is slowing, it is extremely well-positioned for the long haul. His entry point for the stock would be in the low $40’s. He is seeing better value in European financials and European banks.

Bank of America (BAC-N) or HSBC Holdings (HSBC-N)? He owns some of this, and is looking at it as a possibility for the rest of his accounts, as it gives European and Asian exposure. Bank of America does not interest him as he doesn’t care for their business model.

This is choppy and moving sideways. The bigger picture is still bearish. Chart shows a series of lower highs and a couple of recent lows that are higher, so it could be called a bit of a consolidation. Chart shows a triangle formation. You want to buy it on a breakout, which might be around $53. Be patient.

A really well-run bank. If you want a global bank that has good exposure to emerging markets, it is this one. One area where they don’t have good exposure is the US. This is a safe and stable investment. If you own this, you are only owning it for the 5% dividend yield.

Good bank. A lot of big international banks are trading at big discounts to the Book Value because investors don’t actually know what BV really is. This has a large exposure to Asia, and there is a lot of concern right now about loans, in China particularly. Well-run bank, but has had its problems like a lot of banks. Fairly good dividend.

British and Hong Kong bank and he is looking at buying it. Likes exposure to developing markets. High on his radar right now. He thinks it should be valued higher.

(A Top Pick May 2/13. Down 0.35%.) Hong Kong - Shanghai Bank moved their HO from London, England because more than half of their profits were coming out of Asia. The stock then started to trade like a Chinese stock. Has a great yield. One of the largest banks globally. He is still Buying. Very optimistic that when China starts to lift again, this will be a big winner.

Most of their business is UK, Hong Kong derived as well as an investment bank. One of the largest commercial banks globally. Have over $1 trillion in deposits. They have a loan/deposit ratio that is very low, which is a big advantage. Over the last couple of years they have really decided to focus on the areas of the business that are growing and have a meaningful contribution to the overall group. They exited a lot of the businesses in Canada in order to focus on the bigger whales in order to move the needle of the company. Pays a dividend yield of over 5%. Very high quality bank.

(Market Call Minute.) This is a stock that ought to have done a lot better given its exposure to emerging markets. Slow growth exposure in the UK and a big misstep in the US has held it back somewhat. Reasonable dividend, and are starting to increase it.

Global bank and its big earnings driver is effectively Europe and Hong Kong. Key driver for this bank is going to basically be Asia. Historically, like all trade banks, they have grown on the back of importing/exporting. This is ultimately moving back to its roots. Has underperformed, but like all banks it will be affected by higher interest rates. Performed very well during the recession. At this point it is good value and if it goes lower you could add more.