The FinancialContent Network     SocialPicks Community   |   MarketMinute Monitor   |   MarketMinute Market Updates   |   MarketMinute Stock News
SocialPicks
   Sign Up   |   Log In   |   What is SocialPicks?     
7 pts

Opinion on  HSBC Holdings plc (HBC)     Sector: Financial  >  Industry: Money Center Banks
What happens when you're in 2nd lien position?

Apr 28, 2008 08:53 PM GMT
Picture
Return Risk
-28.31% MID
Sr. Analyst

While I realise that HBC is faring far better than American banks due to increased Asian growth, due to the relatively large participation in the 2nd mortgage subprime market (and the inherent risks involved in 2nd liens compounded with a subprime 1st mortgage), I believe it would be a great time to short this stock.

HBC:  This call was made on 04/28/08 @ $85.85
Rating:   Negative   $85.85 (04/28/08)
Gain/Loss:   +32.09% in 560 days
Target:   in Six months


Comments (2)

Add Comment

Arrow_up
Arrow_down
Bull
bullzilla   47%     2 points   commented 559 days ago reply

do you think the other american banks such as wells fargo & BAC would be good candidates for shorts now as well?
Arrow_up
Arrow_down
Picture
David Young   84%     1 point   commented 559 days ago reply

That's a great question. One of the underlying questions for all financials is "Has all the short money been made?" I don't think so.

Bank of America would be a good short until August. That's when they either buy or pull out of Countrywide. All evidence points to Countryslide not being purchased...

Wells Fargo has really been pushing commercial lending through its wholesale side. With commercial mortgages facing their own potential debacle, I think they would be a good short as well over the next 1 year...however an economic boon might counteract that.
Arrow_up
Arrow_down
Picture
David Young   84%     1 point   commented 559 days ago reply

That's a great question. One of the underlying questions for all financials is "Has all the short money been made?" I don't think so.

Bank of America would be a good short until August. That's when they either buy or pull out of Countrywide. All evidence points to Countryslide not being purchased...

Wells Fargo has really been pushing commercial lending through its wholesale side. With commercial mortgages facing their own potential debacle, I think they would be a good short as well over the next 1 year...however an economic boon might counteract that.

Your Comment

Who voted on this idea?
Bull
bullzilla 47% 04/29/2008



ROCK-STAR INVESTORS
Rank Name Sharpe Ratio Avg Return Followers
1 noshoes 21.10 +34.56% 369
2 Gerald Greene 18.14 +69.43% 206
3 stockmarketfunding.com 17.66 +25.71% 53
4 akiralegrand 13.47 +14.32% 61
5 anup2104 12.13 +75.75% 34


POPULAR STOCKS
Symbol Company Name Sentiment
PG The Procter & Gamble Company
GOOG Google Inc
FNM Fannie Mae
GE General Electric Company
SBUX Starbucks Corp
AIG American International Group Inc.

TODAY'S HEADLINES

TODAY'S TOP PICKS

 
HSBC Holdings plc (HBC)
   SocialPicks Sentiment:   

   This Quarter's Sentiment:
All:
37.5%
Top:
0.0%




Latest Picks by David Young
Symbol SP Sentiment Rating Return Since
DBA Positive -4.14% 11/04/08
TIF Negative -5.79% 09/15/08
AXL Negative -6.84% 07/14/08
DIA Negative +8.69% 07/14/08
MS Negative +1.08% 07/14/08

View All >
   
David Young previously rated HBC
Positive +0.00% What happens when you're in 2nd lien position?
04/28/2008
6





IN THE PRESS
Press_forbes Press_washingtonpost Press_wsj Press_npr Press_techcrunch