Hi guys,
I'm new to the forums, have been doing some reading here for a little while. I'm also pretty new to trading. I'm not looking to become an expert day trader or FX scalper or anything like that. I don't have the time or the passion to learn all that I'd need to know to be good at it. What I am looking for are reasonable options for my money for the near term.
My attitude has been that a lot of companies have lost a lot off their share prices lately, and that as things recover, so will their share prices. So I've been willing to put small amounts from my decent sized savings into some of the UK banks as a bit of a punt. I'm getting virtually 0% interest on my savings so I didn't mind taking the risk with the amount I was putting in.
I know a lot of the banks have had large share dilutions so the share price won't go back to what it was. I've been looking at HSBC but never got in because I thought they wouldn't go much higher. Now I've doubly kicked myself because there have been two rallies of around 30% each for them this year. This is not bad return for a company that appears much less at risk than RBS or Lloyds!
So I started having a closer look just recently. I know the horse has bolted largely, but even 5% growth in a year is massively better than my savings. So I looked at the current market cap vs historic market cap. Currently it's around £112b and has been a little higher in recent days. For 2007, 2006, 2005, the numbers are £99b, £107b, £105b respectively. These are from HSBC HLDGS PLC ORD $0.50 (UK REG) - Fundamentals - London Stock Exchange.
So why is it that HSBC is valued more in these times than it was before all this mess started? I was expecting to see the values still lower than a few years ago, based on the risk in the current markets, but obviously there's something I'm missing here.
Anyone able to shed some light for a noob?
Thanks!
I'm new to the forums, have been doing some reading here for a little while. I'm also pretty new to trading. I'm not looking to become an expert day trader or FX scalper or anything like that. I don't have the time or the passion to learn all that I'd need to know to be good at it. What I am looking for are reasonable options for my money for the near term.
My attitude has been that a lot of companies have lost a lot off their share prices lately, and that as things recover, so will their share prices. So I've been willing to put small amounts from my decent sized savings into some of the UK banks as a bit of a punt. I'm getting virtually 0% interest on my savings so I didn't mind taking the risk with the amount I was putting in.
I know a lot of the banks have had large share dilutions so the share price won't go back to what it was. I've been looking at HSBC but never got in because I thought they wouldn't go much higher. Now I've doubly kicked myself because there have been two rallies of around 30% each for them this year. This is not bad return for a company that appears much less at risk than RBS or Lloyds!
So I started having a closer look just recently. I know the horse has bolted largely, but even 5% growth in a year is massively better than my savings. So I looked at the current market cap vs historic market cap. Currently it's around £112b and has been a little higher in recent days. For 2007, 2006, 2005, the numbers are £99b, £107b, £105b respectively. These are from HSBC HLDGS PLC ORD $0.50 (UK REG) - Fundamentals - London Stock Exchange.
So why is it that HSBC is valued more in these times than it was before all this mess started? I was expecting to see the values still lower than a few years ago, based on the risk in the current markets, but obviously there's something I'm missing here.
Anyone able to shed some light for a noob?
Thanks!
