Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

HSBC: A share to buy

By Mark Howitt

15 December 2014 01:52

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Season’s greetings share selectors. HSBC (HSBA) is going to be one of the shares to buy for 2015. As you know, I already hold shares in “The World’s Local Bank” and intend to at least hold throughout 2015, and maybe even add to them.

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Comments

Jonathan

15 December 2014, 04:05

Hi Mark

A good opinion I think. However, what are your thoughts on Mr Woodford who seems to disagree with you?

He argues that HSBC is very well capitalised, but that this leaves it open to large fines from the US Courts who are still not done with british banks and seem to be setting fines based on how much money they have rather than what they did.
Patrick Leahy

15 December 2014, 11:37

I think the current P/E is more like around 13 if you go on this year’s expected results (EPS looks to be down 5-10% on 2013 results based on quarterly figures so far this year). I am still invested but it’s more of a hold for me. Litigation costs are rising (and have eaten away at this year’s higher revenues) and it doesn’t quite seem to be meeting analysts’ expectations at the moment. Long-term a good buy though I think because of the Asian growth potentials and reliable dividend.