DBS    Last:42.34    +0.04

DBS is now Singapore's smallest bank

DBS is the most hit by Lehman the saga. So I would expect it's share price to plunge more then the other banks by percentage.

 

Amazing almost all bank NCPS break below 90 now. Look at lately issued OCBC NCPS, chialat ah.

 

DBS is breaking $10 very soon. The selling is scarely. Look like can go back to $8.

 

Maybe u can start thinking at what price u want to sell that should help u to decide when to buy?

Maybe u can start to predicting at year 2013 - 2014 what the price of DBS will be. Generate a few scenario by yourself.

See the rate of return suit you at current price or not. That maybe will help u to decide when should u buy. ( Cannot wait for everyone to agree then u buy, by the time everyone agree price have gone up ler) Herd thinking is no good for investing.

Current my view are still quite pessimitic at the moment, will definite change depend on the market situation. When u are going to invest depend on you, have u set a target return on this investment yet?

Wait for the coming OPEC meeting see got big cut in oil production then decide ba.

AK_Francis      ( Date: 24-Oct-2008 00:52) Posted: When there is no more bank's issue in global markets. Brendan982201      ( Date: 23-Oct-2008 22:14) Posted: Anybody can advise when to buy bank shares? How to determine when is the entry price?

 

When there is no more bank's issue in global markets.

Brendan982201      ( Date: 23-Oct-2008 22:14) Posted: Anybody can advise when to buy bank shares? How to determine when is the entry price?

 

DBS's risk include high foreign holdings (which have been selling for the past few days now) as well as high regional exposure. Recent actions in India suggest that the bank is aware of the risks and is taking measures to reduce additional losses. It is not advisable to buy based on 3Q results as it is historical (without recessionary environment) and any rebound is at most technical, temporary and unsustainable. As Singapore market tends to track global market, it would be best to wait until signs of recovery earliest late 2009. While there will be premium to pay for the share, at least the downside risk is limited.  

 

Anybody can advise when to buy bank shares? How to determine when is the entry price?

 

OCBC has already made some provisions recently. Not sure about this yr. I'm accumulating on this one as it is one of the affordable one for me. The other two is too big for me... quite heng ah...

cathylmg      ( Date: 23-Oct-2008 21:42) Posted: I wonder OCBC sell such instrument as well. Cos when I walk into OCBC sometime ago, they tried to sell me all sorts of funds, structured products, et cetera.... Sames as all other banks. I didn't trust such products so didn't invest in any of them. They look too desperate for me money. Heng ah!

 

Actually hard to say. I'm not vested for this for the time being, have cut at 17.5 with a few hundred loss. However anything can happen. Some possible positive factors:

(a) Recent financial cures work, confidence comes back and market rebounce.
(b) US new president is pro-economy (likely as their economy is in a mess), market rebounce.
(c) Spore infra-structure (more come due to recession) creates businesses for banks.
(d) HDB upgraders get loans from banks ==> business
(e) DBS has expanded quite widely, ready for a takeoff. It must control its costs, of course.
(f) If it is cash rich, it can do some acquisitions. Now is a good time actually.

Might take some months or years, but DBS would definitely bounce back again. If it dies, we all die.
I have missed it during SARs just for a $1 difference, now i'm not going to miss it. About the same level when i missed it last time.

All the best.

knightbridge      ( Date: 23-Oct-2008 19:18) Posted: Hard to say whether they will make provision for the lehman investor compensation immediately. And also some of investment they held will they write down all in one Qtr? Unlikely Look at the banks of US during the crisis, you will know they have to do it slowly in case it cause panick to all DBS bank investors. Definitely DBS got more potiential for downside as alot of people are waiting to go in cause they think is cheap compare to 2007. But when u  look at the fundamental. 1 Not many people will buy investment products now - no commission for banks 2 Possible of more bad debts from people and companies - eat into profit 3 They are scare to loan alot money to companies - no return for bank 4 Equity investment of bank value sure will drop - How much provision do the have to make (Unknown Yet) 5 Compensation to Lehman incident - write off again 6 Credit card spending likely to drop in recession and more bad debts - less commission for the bank 7 Bull Run for the last few years - alot of bank staffs with fat salary - Overheads have already increased

 

I wonder OCBC sell such instrument as well. Cos when I walk into OCBC sometime ago, they tried to sell me all sorts of funds, structured products, et cetera.... Sames as all other banks. I didn't trust such products so didn't invest in any of them. They look too desperate for me money. Heng ah!

 

will buy ocbc below $3 & uob below $6 . dbs no way .

millionodyssey      ( Date: 23-Oct-2008 19:44) Posted: UOB, OCBC, DBS. Which one will you choose if you were to buy now?   My personal finance blog

 

In 1997, was POSB pumped into DBS to cover their loss in Indonesia ? This time may be they have to sell off POSB to cover some losses. If their balance is worst than in 1997, 10 yrs down the road got no future. No thanks for their lousy service and over-aggressive investment.

 

Wait lohh...for their poorer report, all can guarantee reported lower profit, take Q from other Angmo banks, oredi starting to reported, even inter banks borrowing (banks to banks) got problems, can tell that it is going to take 2 - 3 Q to write down till next end year 2009 / 2010 for confident to crawl back. Share / stocks trading px usually start it movement response six months in advance of it anticipation. so reckon six months down the road from nowcurent trading px..in down side liao.

 

UOB, OCBC, DBS. Which one will you choose if you were to buy now?

 

My personal finance blog

 

Hard to say whether they will make provision for the lehman investor compensation immediately. And also some of investment they held will they write down all in one Qtr? Unlikely

Look at the banks of US during the crisis, you will know they have to do it slowly in case it cause panick to all DBS bank investors. Definitely DBS got more potiential for downside as alot of people are waiting to go in cause they think is cheap compare to 2007.

But when u  look at the fundamental.

1 Not many people will buy investment products now - no commission for banks

2 Possible of more bad debts from people and companies - eat into profit

3 They are scare to loan alot money to companies - no return for bank

4 Equity investment of bank value sure will drop - How much provision do the have to make (Unknown Yet)

5 Compensation to Lehman incident - write off again

6 Credit card spending likely to drop in recession and more bad debts - less commission for the bank

7 Bull Run for the last few years - alot of bank staffs with fat salary - Overheads have already increased

 

 

DBS is going to announce its 3Q 2008 on 7 Nov 2008. Do you think it will rebound ?

 

I rather put the money in UBS bank, Citibank bank or Goldman Sach if you ask me to compare with DBS Bank.

Our government has put in more that 20 billion on these bank. Compare to DBS Bank, the return of the US Banks may be more favourable when the crisis is over.

If long term for 5 years, buy the US Bank better might offer better returns in 5 years

 

I have a holding power of 5 years. I feel like buying this DBS stock at around $9 and holding it long term. Do you guys think it's a good price to enter?

 

My personal finance blog

 

I also holding 1 lot at $13.80. Boring liao, now total paper loss of $33,000 already... Sian...

 

Wait till they have annouce the write down on their investment first. You look closely at their Balance Sheet you should be able to find some pit hole.

If you are a long term investor, still can wait alittle longer