Friday, May 15, 2009
HSBC - Time to Unload a Bit
For HSBC, brother speakman, it is very likely that before HKD84 GS will have already sold their holdings and changed positions before announcement. Besides, another factor to keep in mind is that now it will be the time for Eric Knight to start to cash out his consulting fee, particularly if HSBC can rise over 70. This is a promise for his consulting work: to increase the "shareholder's value". Another interesting fact is that GS is also one of the "banker's bank" of HSBC. Bear all this in mind, when the share price really rises over 70, take your chance to unload the shares and buy some put warrants as a partial hedge. Considering the put will drop a lot before, the price-to-performance ratio should be quite sound.