Overseas Chinese Banking Corporation (OCBC Bank)

Oversea-Chinese Banking Corporation Limited will be announcing its financial results for 2013 on 14 February 2014 (Friday), before the trading market opens.



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(03-02-2014, 12:14 PM)DP28 Wrote:

(03-02-2014, 11:57 AM)kelvesy Wrote:

(03-02-2014, 11:33 AM)DP28 Wrote: I've never seen a market so dead after CNY. Felix, I agree 10% is a good guage. I would prefer a gap down of 50+ points will prove an entry opportunity. Somehow I feel counter specific are dropping faster than the index. Anyone sharing similar sentiment?

Its really been a disappointing start.

Any examples of those counters?

OCBC, SMM, Properties capland & CDL

OCBC is a good pick, its only trading at about 11.5 times earnings. its previous year high was 11.20, currently its 15% down from that high. Investors oversold OCBC due to the uncertainty in Wing Hang acquisition, however this year OCBC dropped twice as much as DBS and UOB, meaning investors has already factored in the potential dilution.

(03-02-2014, 12:48 PM)felixleong Wrote:

(03-02-2014, 12:14 PM)DP28 Wrote:

(03-02-2014, 11:57 AM)kelvesy Wrote:

(03-02-2014, 11:33 AM)DP28 Wrote: I've never seen a market so dead after CNY. Felix, I agree 10% is a good guage. I would prefer a gap down of 50+ points will prove an entry opportunity. Somehow I feel counter specific are dropping faster than the index. Anyone sharing similar sentiment?

Its really been a disappointing start.

Any examples of those counters?

OCBC, SMM, Properties capland & CDL

OCBC is a good pick, its only trading at about 11.5 times earnings. its previous year high was 11.20, currently its 15% down from that high. Investors oversold OCBC due to the uncertainty in Wing Hang acquisition, however this year OCBC dropped twice as much as DBS and UOB, meaning investors has already factored in the potential dilution.

Be ready to chip in to buy the rights issue when you buy into OCBC. Investors who does not have the ammo to subscribe for the rights have been and are still selling their shares.

Ya true, need deep pockets for the coming rights issue

(03-02-2014, 12:58 PM)felixleong Wrote: Ya true, need deep pockets for the coming rights issue

Most probably the rights issue will be renounceable. If it is not much different deep pocket or not.

I still remember the last time ocbc did a rights issue was like 2005? They paid like $1.00 dividends and gave one rights for every 5 shares u had, the exercise price was only $5.00. So basically you could just pick up the new shares using your new dividends. I am hoping they could do something similar this time round but i think thats unlikely to happen. Fortunately after their sale of fnn and apb they did not pay special dividends, just hoping they dun ask too much $$ from shareholders to pay for wing hang.

(03-02-2014, 12:48 PM)felixleong Wrote:

(03-02-2014, 12:14 PM)DP28 Wrote:

(03-02-2014, 11:57 AM)kelvesy Wrote:

(03-02-2014, 11:33 AM)DP28 Wrote: I've never seen a market so dead after CNY. Felix, I agree 10% is a good guage. I would prefer a gap down of 50+ points will prove an entry opportunity. Somehow I feel counter specific are dropping faster than the index. Anyone sharing similar sentiment?

Its really been a disappointing start.

Any examples of those counters?

OCBC, SMM, Properties capland & CDL

OCBC is a good pick, its only trading at about 11.5 times earnings. its previous year high was 11.20, currently its 15% down from that high. Investors oversold OCBC due to the uncertainty in Wing Hang acquisition, however this year OCBC dropped twice as much as DBS and UOB, meaning investors has already factored in the potential dilution.

yup i agree with your analysis..picked up some earlier today...in fact from the start of the yr 2014 till now...OCBC has dropped 10%++ already...i think it might be a little bit overdone...

(03-02-2014, 01:48 PM)felixleong Wrote: I still remember the last time ocbc did a rights issue was like 2005? They paid like $1.00 dividends and gave one rights for every 5 shares u had, the exercise price was only $5.00. So basically you could just pick up the new shares using your new dividends. I am hoping they could do something similar this time round but i think thats unlikely to happen. Fortunately after their sale of fnn and apb they did not pay special dividends, just hoping they dun ask too much $$ from shareholders to pay for wing hang.

Not vested. But OCBC is on my Radar Screen.

(03-02-2014, 02:45 PM)Temperament Wrote:

(03-02-2014, 01:48 PM)felixleong Wrote: I still remember the last time ocbc did a rights issue was like 2005? They paid like $1.00 dividends and gave one rights for every 5 shares u had, the exercise price was only $5.00. So basically you could just pick up the new shares using your new dividends. I am hoping they could do something similar this time round but i think thats unlikely to happen. Fortunately after their sale of fnn and apb they did not pay special dividends, just hoping they dun ask too much $$ from shareholders to pay for wing hang.

Not vested. But OCBC is on my Radar Screen.

Agreed. Am looking at auspiciousness.. $8.88 Nov 12 low.

If u are looking to invest in local banks, still got 2 weeks till their full year results on feb 14. Maybe ocbc would shed more light on their acquisition? One big potential bonus that might take place is the dropping of wing hang, since investors are sooo uncomfortable with this deal. Management really have to convince us on what shareholder value they can bring in.