atans1

StanChart: A buy for the bold & canny?

In Temasek on 13/08/2012 at 6:28 am

Looks like Jewish-American NY regulator is a “rogue regulator” in it for the publicity (new boy in town) or to shake down StanChart for US$700m.

Meanwhile some combination of a massive fine (say US$1.5bn),  mgt changes (both looking unlikely as is the  loss of US licence) or Temasek doesn’t want to be on the wrong side of the allegations and wants out (unlikely too), someone like JP Morgan or BoA who covets StanChart’s trade financing biz in Asia and other emerging markets might bid http://www.breakingviews.com/standard-chartered-selloff-has-gone-far-enough/21034299.article

Anyway it is cheap. Trading at about 1.17x book (HSBC trades at 1x book) even after its recovery. It usually trades usually at 1.3x book.

Hurry, hurry before the discount disappears. Buying at this level gives exposure to S’pore and HK where banks trade at around 1.3x book), and Msia and Indonesia (where banks trade at around 2x book minimum) at a discount.

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  1. Singapore dramatically exposed with a stunning 60%-plus of GDP tied up in Eurobank claims

    http://www.zerohedge.com/news/why-stability-stalwart-singapore-should-be-scared-if-feta-truly-accompli

  2. Its a value trap. I wouldnt touch it with a barge pole. Even National Bank of Greece is a safer bet.

  3. Buy in London market or buy in HK market ? I am not 100% clear which is better for Singaporeans..

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