DBS vs OCBC and UOB - Part 2

smallboi09

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Finally there's no more last minute selling down at the end of the day after the MAS announcement.. all the insider info gtg @.@
 

Lex1989

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Imagine holding 10 lots of DBS pending 1.55 dividends = S$15500.00

Now become S$$7500.00

Ouch,.....
 
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CSI.Hippo

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Looking to add more bank stocks. Dividends not paid are not lost. Still within the banks.
 

MajinBuui

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I got keep track of uk financial news, uk banks few months back already expect regulator to order dividend freeze.
ECB also ordered freeze dividend and sharebuyback.

http://archive.is/XKgXT
http://archive.is/w5gkR

I like how this guy phrase it abt lloyds regulator ordered bank dividend freeze:
When a business is barred from paying out earnings, it’s no wonder that investors flee, asking whether their company is a commercial entity or merely a branch of the state’s system of financial control.
https://neilcollinsxxx.wordpress.com/2020/06/05/banking-for-the-brave/
 
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Potato_Wedges

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Buffett bought about $813 million of Bank of America stock between Monday and Wednesday last week. He has now shelled out about $1.2 billion to to buy around 50.3 million of the bank's shares in the past eight days, bolstering his position by about 5.3%.2
 

teckgamer

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I guess it's a good time to hoot some? I have some amount fresh off USD denominated RSU shares from my company ...
Will be adding some DBS huat ah! Let's average down
 

WC32890

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I guess it's a good time to hoot some? I have some amount fresh off USD denominated RSU shares from my company ...
Will be adding some DBS huat ah! Let's average down
But what makes you so bullish? Don't get me wrong, I'm not saying you are wrong. To each his own but just to share my opinion, i think prices of singapore banking counters will go down significantly from where it is today and stay down for the forseeable future.

Reason being their NIM will get crushed by the low interest rate environment, increased provision of bad debts (Hin Leong, Zenrock?) and even fee based income will be affected since many people will be out of jobs and wealth destroyed. Not saying the banks will go bankrupt, heck no but it will not be as profitable as pre Covid-19 days. Additionally dividend will be cut and will stay at that level for sometime to come.
 

smallboi09

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All depends on vaccine news now tbh... If within the next few months there are positive news, can see a recovery within the next year... If vaccine results are negative.... GG to the economy and everyone for years
 

netzach

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it's gonna take a pretty long while & it might very possibly be a long ride down.

hold your guns.

interest rates are low af atm & it would eat directly into the banks' NIMs.
besides that, with a definite closing of businesses, difficulty of loan repayments, defaults, what nots, that is all gonna seriously spike up the NPLs.

with the massive scaling down of business expansions & operations, loans are gonna stay low for a considerable period of time.

but if you're in for the long haul, then my suggestion would be just to buy in batches at a price & dividend yield that you would be comfortable holding.

taking DBS dividend as a guide, the price that you should be targeting or would rather be buying in at batches would be.

Dividend/Dividend Yield (that you would be comfortable in holding)

E.g., Aiming to get and would be "comfortable" to hold, in case dividends get slashed again, a yield of say, 4% -> 0.72/0.04 = $18, 4.5% -> 0.72/0.045 = $16., you get the drift.

Don't rush in. No one can guess the bottom.
Buy slowly in batches that you would be willing to hold for the long haul without losing sleep at night.

Take care & best wishes.

:o:o
 

AhhHoNG

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All depends on vaccine news now tbh... If within the next few months there are positive news, can see a recovery within the next year... If vaccine results are negative.... GG to the economy and everyone for years
So far so good, all the companies that are in phase 3 of vaccine testing all gt good results in their phase 2.
 
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