atans1

HoHoHo: StanChart has another problem

In Banks, China, Emerging markets, Temasek on 27/08/2015 at 1:42 pm

StanChart is expected to call for a rights issue by yr end. But mkt turmoil will make this difficult and expensive.

FT reports

“StanChart has been one of the hardest hit by the market turmoil. Shares in the bank, which is listed in London but specialises in Asia, the Middle East and Africa, have fallen a quarter this month and are down two-thirds in the past two years.

‘One investment banker said worries about slowing Asian growth and falling commodity prices risked creating “a perfect storm” for StanChart that would make it “much tougher to sell new shares” to investors.”

Note that FT reports that according to Nomura, half of StanChart’s Asian revenue in the first half of 2015 and less than 10% of HSBC’s came from China proper.

And that “from trading at more than double its tangible book value, its market value is now a third less than its assets, a discount even to big victims of the financial crisis, such as Royal Bank of Scotland.”

HoHoHo

  1. No worries man. Now is good time to devote some 4D & Toto money to pick up some SC shares. Can aim for 200% returns over next 2 yrs. At most go to zero, that’s why use your 4d & Toto money only.

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