OCBC Bank    Last:24.0    -0.53

OCBC

below  6 for me i sure buy. Sell hse sell wife sell underwear borrow from loan shark i also hoot.

reliever      ( Date: 03-Feb-2014 16:11) Posted: Then below 8 then below 7 then below 6 then below 5 then below 4 then below 3 then below 2 then below 1 then people are interested?   moneyplant      ( Date: 03-Feb-2014 14:31) Posted: Stay clear it shall slide nicely below 9 before people get interested

 

Sellers don't believe them...unless they raise interest rate or else low spreads will hit bottom-line 

 

OCBC: is one of the biggest laggards among the STI?s constituents, contributing more than 33 points of the index?s 176 points downside movement since the start of the year. Recent newsflow suggests that OCBC?s acquisition of Wing Hang Bank has a greater probability of happening than previously thought ? Macquarie believes this could mean more downside for OCBC?s shares. Media (eg Reuters) are reporting a bid price of 2x P/BV or roughly US$5.3b. Macquarie believes some form of share dilution (est 9-10%) is inevitable, in order for the bank to fulfil regulatory capital requirements. Macquarie estimates OCBC will require a min of $2.7b in new capital to fund the deal and maintain an 11% CET1 ratio. However, the house struggles mroe to understand the economic rationale for paying 2x P/BV for a 9-10% ROE business in Hong Kong?s de-rated market competing against major incumbent players with better positions both in HK and China, and where cost synergies are not at all evident. Pending clarity on the deal, presumably within the next month (3 Mar), Macquarie maintains Neutral on OCBC and cuts TP to $9.50. Notes as a general statement, selling acquirers and buying acquisition targets is not a bad tactic when trading on bank M& A news, and the shares of both banks may reflect this in the short term. Similarly, Macquarie expects a sharp reversal if pricing disagreement or regulatory concerns scuttle a deal.

 

Then below 8

then below 7

then below 6

then below 5

then below 4

then below 3

then below 2

then below 1

then people are interested?

 

moneyplant      ( Date: 03-Feb-2014 14:31) Posted: Stay clear it shall slide nicely below 9 before people get interested

 

bought today  :). Good Fundamental Strong Co!

 

Stay clear it shall slide nicely below 9 before people get interested

 

From a TA point of view, it may look bearish....but do not these points...

1. It is at its 52 weeks low.  Dividend yield of aro 4%
2.The take over of a bank in HK ( if successful ) is giving them a great foothold into the southern CHINA market.  ( HK, Macau and GZ. ) Assuming it is below 2 times book value. ( it is cheaper then the 3 times or more DBS paid some years ago for another bank)
3. OCBC is a very strong bank in South East Asia and with this takeover in HK , it only enhance its position and become a greater bank in Asia. 
4. Last by not least.....who is buying up the higher volume this few weeks ?
5. We are assuming there is a right issue for the $5B capital needed ....we have not even know the right issue price...so cant conclude its must be bad.

Maybe when the takeover is known, the write  out from the negative forces will all turn positive.
Whatever,  there is good value in OCBC.

Pls do your own check on this .

Good Luck.

 

gold123      ( Date: 29-Jan-2014 16:32) Posted: Ocbc looks v bearish.. gold123      ( Date: 23-Jan-2014 21:16) Posted: Ocbc more likely of heading further south

 

Agree, support was broken strongly.. heading towards 9.2 i think

gold123      ( Date: 29-Jan-2014 16:32) Posted: Ocbc looks v bearish.. gold123      ( Date: 23-Jan-2014 21:16) Posted: Ocbc more likely of heading further south

 

Ocbc looks v bearish..

gold123      ( Date: 23-Jan-2014 21:16) Posted: Ocbc more likely of heading further south New123      ( Date: 09-Dec-2013 22:00) Posted: Ocbc looks bearish. See my view at  http://sporeshare.blogspot.sg/2013/12/ocbc.html

 

testing 9.30 ..

 

more likely of going down to test 9.30 then 9.00...

gold123      ( Date: 23-Jan-2014 21:16) Posted: Ocbc more likely of heading further south New123      ( Date: 09-Dec-2013 22:00) Posted: Ocbc looks bearish. See my view at  http://sporeshare.blogspot.sg/2013/12/ocbc.html

 

OCBC Makes $5 Billion Deal to Buy Hong Kong's Wing Hang Bank

 

http://online.wsj.com/news/articles/SB10001424052702304856504579340033750213384?mg=reno64-wsj& url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304856504579340033750213384.html 

 

Attainable!

moneyplant      ( Date: 24-Jan-2014 13:49) Posted: FYI Some opportunistic buyers are looking at 888  gold123      ( Date: 23-Jan-2014 21:16) Posted: Ocbc more likely of heading further south

 

FYI Some opportunistic buyers are looking at 888 

gold123      ( Date: 23-Jan-2014 21:16) Posted: Ocbc more likely of heading further south New123      ( Date: 09-Dec-2013 22:00) Posted: Ocbc looks bearish. See my view at  http://sporeshare.blogspot.sg/2013/12/ocbc.html

 

Ocbc more likely of heading further south

New123      ( Date: 09-Dec-2013 22:00) Posted: Ocbc looks bearish. See my view at  http://sporeshare.blogspot.sg/2013/12/ocbc.html

 

OVERSEA-CHINESE Banking Corporation (OCBC Bank) said on Tuesday that it has agreed to subscribe for up to 207.55 million new shares in Bank of Ningbo Company Limited at RMB8.85 each.

The acquisition, which will cost about RMB1.8 billion, or S$383 million, will boost OCBC?s stake in the China bank from 15.34 per cent to 20 per cent - the maximum foreigners can own in a Chinese bank.

 

 

OCBC - All eyes on China

Written By Stock Fanatic on Tuesday, January 14, 2014

OCBC has announced its plan to increase its stake in Bank of Ningbo, its strategic partner since 2006, from 15.34% to 20%. This is in line with its intention to build a bigger presence in Greater China, which it has identified as one of its core overseas markets. We also hear that it is in talks to acquire Wing Hang for as much as HK$38.3bn (1.9x P/BV). 

We maintain our target price (GGM, implying 1.24x P/BV) and Reduce rating, with de-rating catalysts expected from a potential overpayment for Wing Hang.

What Happened

Increasing its stake in Bank of Ningbo to 20%. OCBC has agreed to subscribe to 207.5m new ordinary shares in Bank of Ningbo for Rmb8.85/share. The total consideration of Rmb1.8bn (S$383m) will be funded internally. The transaction, which is expected to be completed in 3Q14, will increase OCBC?s stake in Bank of Ningbo from 15.34% to the maximum 20.00% permissible for foreign investors.

Wing Hang acquisition likely to be priced at 1.9x P/BV. OCBC is also believed to be in discussions to acquire Wing Hang Bank at a valuation as high as 1.9x P/BV. This implies a price tag of HK$38.8bn (S$6.3bn). OCBC is said to be in talks with several lenders to finance its acquisition with short-term debt, with possible plans to raise funds through equity to repay the loans.

What We Think

Bank of Ningbo. We are positive on any increase in its stake in Bank of Ningbo, as the latter has been helping OCBC tap the Chinese market. Bank of Ningbo is a well-run bank with strong ROEs of 19.9%, and a presence in the major cities of China. It is strong in servicing SMEs and providing trade finance in China, which will complement OCBC?s operations in the region.

Wing Hang Bank. At 1.9x P/BV, we believe OCBC could be overpaying for Wing Hang as the latter?s forecasted ROEs of 9-10% are lower than OCBC?s 11-12%, yet OCBC is trading at a lower P/BV of 1.2x. OCBC will have to issue shares to fund the acquisition, which could result in earnings dilution. Its CET1 ratio will also be pushed below the regulatory minimum of 9.0%.

Technical Analysis

Daily Chart

What You Should Do

Maintain Reduce. Although value is starting to emerge after its recent underperformance, fears of dilution and a share overhang could cap its share-price recovery, when it is still in talks to buy Wing Hang.  (Read Report)

DOYDD

 

 

O

Singapore?s Oversea-Chinese Banking Corp has agreed to raise its stake in Bank of Ningbo to 20% from 15.34% for about $383 million, the latest step in a drive to extend its footprint in China.

The transaction will be funded through OCBC?s internal resources and is subject to regulatory approvals in China, as well as by other Bank of Ningbo shareholders, OCBC said in a statement on Tuesday.

The deal is expected to be completed sometime in the third quarter of 2014. It comes just a week after OCBC said it was in exclusive talks to buy Hong Kong?s Wing Hang Bank in a deal that could be worth over US$5 billion ($6.3 billion).

OCBC has been in a partnership with Bank of Ningbo since 2006. It said China?s growing importance in terms of trade and the increasing internationalisation of its currency offer OCBC good prospects for developing its business.

CBC agrees $383 mil deal to raise stake in Chinese bank

 

 

Oversea-Chinese Banking Corporation- Analysing

options to fund planned acquisition of WHB.

(OCBC SP/BUY/S$9.74/Target: S$12.45)

FY13F PE (x): 12.6

FY14F PE (x): 11.8

OCBC has entered into an exclusive agreement with the substantial shareholders of

Wing Hang Bank (WHB) on 31 Dec 13 to finalise the terms for a possible transaction

until 31 Jan 14. There is no binding agreement at this stage and discussions between

OCBC and the substantial shareholders of WHB are ongoing.

Our views. We agree that OCBC has slightly overpaid for the planned acquisition of

WHB. It would also be tough to achieve revenue or cost synergies envisioned by

management. However, we recognise it is difficult to find an acquisition target, especially

one that provides management control. It is possible to fund the acquisition fully through

debt if capital is replenished over time through its scrip dividend scheme.

Maintain BUY. Our target price of S$12.45 is based on 1.71x P/B, derived from Gordon

Growth Model (ROE: 12.0%, required return: 7.8% and growth: 2.0%). We will lower our

target price accordingly if OCBC concludes a binding agreement to acquire WHB.

UobkH