Overseas Chinese Banking Corporation (OCBC Bank)

[felixleong]

You've added 5 lots today ..... so I am guessing that you have decided that there won't be any rights issue placement ?

Am I correct to assume that?

I'm still pretty bullish on OCBC's long term fundamentals, added another 5 lots today
Target price at least $10

Can not be lah. i think right issue (hope it's renounceable) will be sooner or later. So now "vested interests" must see that the price is well supported lah.
i think this time, market's sentiments is different from when DBS bought over DAO HENG.
i think my chance of purchasing NPRs and subscribe for the mother shares is diminshing by the day if bull market still intact.

Anyway, this is my sentiment.
TECHNICALS & FUNDAMENTALS?
Don't bother now.

base on my on calculations (I may be wrong or inaccurate) they need about 3 bil like that... even if rights, wouldn't be too pain
say 1 rights per 10 shares at $9 (something like that), still easily tankable.
Market previously was really overreacting, sending it down from $11.20 to 9.xx levels

market sentiments wise, sti is rallying as we have seen it take off from 3000 level up to breaking pass 3200 level which I'm taking it as a bullish sign(I may be wrong and the bear may come back)

as 1/3 of the STI are our 3 local banks, my overall bullishness it reflected in my purchase. Do note I am also positive on DBS too, of the 3 local banks I just don't like UOB maybe because its controlled by the Wee family and I feel they are more focus on rewarding themselfs instead of shareholders (UOB CEO salary is 9 mil!)

Overall at 12 times earnings or less, I still feel banks are a good long term bet. Rights issue will still remain as an overhang but if you have deep wallets, this issue wouldn't pose as a serious issue.

Also by taking a position in OCBC should mean u have a positive long term view in the growth of the China economy.

I spoke about OCBC at around the $9.30 level currently it has gone up to $9.70 level
you can read about my previous post at http://stockbrokerplayspoker.blogspot.sg...cheap.html