Two sharp investors recommend HSBC Holdings

Posted Feb 28th 2007 2:30PM by Eric Buscemi
Filed under: International Markets, China, Bargain Stocks

With market volatility jumping up in China, it might provide a good entry point to get into HSBC Holdings ADS (NYSE: HBC), the old Hong Kong Shanghai Bank.

David Herro, the long-time successful international fund manager at Oakmark, recommended the stock a few weeks ago in Barron's at $89 per share. The stock is now down to $86 on yesterday's global sell off. Herro liked the stock as a more conservative play on Asia and its many emerging markets.

Chuck Allmon, long-time investor and publisher of Growth Stock Outlook investment newsletter, also likes HSBC. In an interview with Kate Welling at Welling@Weeden, Allmon mentioned he liked the world's fourth largest bank because it has balanced exposure to North America, Europe and Asia. Allmon also liked HSBC's 4% yield and only 11x earnings valuation.

As the lemmings panic over a much needed correction in China, yesterday's sell off provides the level-headed investors with an opportunity to get into this stock.

Tags: bank, barron's, barrons, china, chuck allmon, ChuckAllmon, david herro, DavidHerro, growth stock outlook, GrowthStockOutlook, hbc, hsbc, kate welling, KateWelling