Standard Chartered PLC - LSE - BUY?Price is on strong support, also its bouncing off 200 moving average??
STAN trade ideas
Standard Chartered Short IdeaSTAN on the daily chart has put in a double top.
An inverted cup with handle pattern is forming down towards the 200 EMA.
Once price closes below the 200 EMA I will be looking for a short position. Around £5.40
Measured move (Size of Cup) will be my first profit target at £4.32 which is also an historical support level.
Stop initially at top of handle around £5.96.
Standard chartered HTF. Bulls are back in town.Afternoon chaps and chapettes, we are looking at STAN forming a multi-year descending wedge, if we break out we should see some nice upside.
RSI has worked its way out of resistance from circa 2007.
Will go into more detail zoomed into the daily.
UK banks have the lowest exposure to Russia comparable to the rest of Europe, Standard chartered has no direct meaningful exposure which is of course very positive.
Most of Standard Chartered exposure comes from Asia which means interest rate hikes will be lesser impactful on income due to Asia generally cutting rates.
Targeting 8-10% growth up from 5-7%.
$750mln buy back program initiated at the last earnings report.
Reaction?The blue zone is the monthly Kijun and price was gravitating towards it for 3 months now and 3 happens to be the magic number. Remmber kijunis also the 50% Fib zone. So i am looking for a bearish May. I want price to hit and reject the blue zone (preferably on the daily) with good volume. That little doji that closed off the week says a lot,small little candle but the volume traded was higher than average. The bears are building up. However i prefer we really get into blue and reject. . . .so i wait.
Standard Chartered - Short PositionI meant to publish this Friday, but got tied up with other things.
I was originally looking at this share as a long position early last week, it appeared in one of my stock filters for long positions.
Standard Chartered (STAN) is supposed to be the 3rd most shorted stock on the UK index by the big players (one being Steve Eisman from the "Big Short").
If you look at STAN figures the bank sits very well financially, no real debt ($60BN cash balance), 29.2% Operating Margin, $2.5BN Net Profit forcast (Operating of $4.7BN)
and a forward PE of 10.5 ( Ranked 233rd out of 803 companies in the UK & Ireland market.) - so for the sector the PE might be a little higher than the average.
Why short:
- Was fined $1.1BN for money laundering - There might be more bad news to come. The provision for fines in its 2018 accounts was only $900M - Could Stan get a BNP type size fine in the future?
- Though it looks on paper a good prospect, it might be a little over valued for the sector, its PE on 2018 figures is 35, so the price is dependent on future forecasts being correct.
- On Friday 8th November 2019 ( the day I shorted) the pension allowances for its chief executive and chief financial officer are to be halved from January following a shareholder protest.
- In May 36% of votes cast at Standard Chartered's annual shareholder meeting were against its remuneration report, which had recommended that Winters receive a pension allowance in 2019 of 474,000 pounds ($607,000), on top of his fixed salary in cash and shares of 2.4 million pounds.
- Profits over the last 4 years haven't been that good,
Operating Profit $M 2013 2014 2015 2016 2017 2018
6,064 4,235 -1,523 409 2,415 2,548
The forecast for 2019 is $2,550 M
- The general trend for the shares over the last 5 years has been in a downward direction. Presently trading at roughly the same price as after the financial crash in 2008. So no added value in the last 10 years.
- The more I researched STAN early last week the more I got a gut feeling I didn't want to buy the share, something just didn't feel right ( I know this isn't a reason, but it is the way I felt).
- The share has been trading in a cycle between trades resistance at 740p and support of 600-630, so if I am wrong on the reasoning I do have a technical reason for the trade.
My Trade was
Open at 729.7p
SL 749.7p
Get out quick was 742p
Limit 667p
Though I tend to drop a limit and go with a trailing stop loss when I hit a soft limit like this, my aim is 640-650ish.
Standard Chartered Bank (SCB) PLC near filing bankruptcyStandard Chartered Bank (SCB) PLC near filing bankruptcy
SCB could not hold the 2009 financial crisis low and made a all time new low. And barely surviving. Time has come to remove account from the bank as it will trade below $3 or even lower for sure in coming months. I used to work there and was one of my fav bank, but looks like time has come to an end...soon....
