I have already told you many times, the multi-sensational, ‘in the cat bird seat’ fundamentals, going forward with Charles Schwab (SCHW).
Now for a technical catalyst!
Look at the 1yr chart and the very nice ‘cup’ taking formation. We are makin our way up towards the the beginning formation of the handle to come. Now, I am not a technician. Nor do I play one on TV. But I have spotted this before. In Church & Dwight (CHD). It was pre 2:1 split in (CHD) when it was trading 45-50. And then it’s run to $85 before splitting. See old post below.
“Components of the Cup and Handle
There are several components of the cup and handle that should be noted in order to evaluate the potential trading signal. First, it’s important that there is an upward trend before the formation of the cup and handle. In general, the larger the prior trend is, the lower the potential for a large breakout after the pattern has been completed. The reason being that a lot of the run-up in the security happened prior to the formation of the cup, again weakening the size of the potential upward move
A cup-and-handle pattern resembles the shape of a tea cup on a chart. This is a bullish continuation pattern where the upward trend has paused, and traded down, but will continue in an upward direction upon the completion of the pattern. This pattern can range from several months to a year, but its general form remains the same.
The cup-and-handle pattern is preceded by an upward move, which stalls and sells off. The sell-off is what forms the initial part of this pattern. After the sell-off, the security will basically trade flat for an extended period of time, with no clear trend. The next part of the pattern is the upward move back towards the peak of the preceding upward move. The last part of the pattern, known as the handle, is a relatively smaller downward move before the security moves higher and continues the previous trend.”
old Stockpickr post
I’m pondering whether to commit more $ to Church & Dwight Co. Inc. (CHD) @ or
around $56-57? In anticipation of a move up to the next level in the coming
weeks. One based on the underlying fundamentals in the company and it’s stock
being strong within the space. Second, I give them props for ‘staying strong all
along’, so to speak. Lastly, what seems to be a “cup n handle” formation in
the charts. That’s indicative of a move to the upside to come. Maybe to the
$65-68 range some 17-19%. Stock close Fri July 17 2009 @ 56.19. I would’ve liked
to see a little more roundness on the formation of the bottom of the cup to be
honest, but I think it’s there or presents itself enough (this crap ain’t a
precise science ya know ;)
Church & Dwight Co. Inc. (CHD) @ $68…one to watch in the coming weeks.
Building yet another ‘cup n handle’ formation in the charts and the fundies just look sensational… for this Domestic Consumer Staple BEAST!…and the
manufacturer of Trojan Brand Condoms.
this stock is getting ready to break out…..am I alone? ~steve goff
18-Jul-09 12:53 pm
16-Oct-11 07:38 pm
Schwab Corps (SCHW) earnings on Monday? Dare I even attempt to calculate
estimated analysis??? he he off course > Along the lines of $0.25-.29 per share
for the past quarter. This surprise to most, will stem from a few different market and societal catalyst that are currently taken place and shape.*The Good-Guy Bank/Bad-Guy Bank, in the ‘Occupy Wall Street Campaign’ (What are they calling themselves these days?)During the whole sub-prime lending fiasco, the CDS’s and CDO’s cesspool, the mortgage lender and housing market meltdown, Major insurers collapses, that have occurred since 2007. Schwab is one names you have not seen in the headlines.
Orrrrr ever standing in line for some TARP from ‘Hammering Hank Paulson’ at the time. Because you participated in casino games. That is very important to Chuck Schwab being THE industry ‘poster child’ for asset management integrity and ‘prudent man rule’ business practices and investments. Not a DIME of TARP taken here. It’s even tough to get Schwab to lend you stock to short (now that is tight run ship) They were not even made to do the en-unison ‘perp walk’ to the FED Discount Borrowing window by Paulson. Like he made some do who did not even really need TARP assistance. Goldman Sachs even had to become a ‘bank holding company’ in order to tap the FED window then. We are now reading headlines about that change hurting Goldman. Goldman Sachs should BUY Charles Schwab out for a few reasons.
That is one of them for sure. Everyone and there mother knows a majority of
Especially into the retail options market. the bought OptionsExpress in mid March for about $1 billion. Also last August 2010 bought Windward Investment
Management for $140 million. And today With more and more ‘Average Joe Investor using the options market to both hedge core long holdings and to participate in volatile stock movements with out having to buy long or short stock, thus deadening your trading/operating capital. To writing and selling covered calls
The financial information playing field is now mostly level for investors, via
The mass creation blitzkrieg of the ETF and ETN markets. Chucks stands to benefit from that as well. Even know ETF’s are the next black swan event IMO. Chuck still make coin on the transactions of them and not the managing of them. They have a little….but not much exposure there.
$1.7 trillion in total assets, roughly half are held in retail brokerage
The trading software/platform is great also.In the second quarter, retail advisory assets rose by 20 percent from the year-earlier period. Indeed, Schwab is converting “billions” of dollars a month from self-directed accounts to one of its advisory offerings, Bettinger said.
Charles Schwab Corp. (SCHW) @ $12.75
Sentiment : Buy
Schwab 3Q net income up 77 percent
Schwab 3Q net income climbs 77 percent as assets increase, clients use help advisory services
Discount broker Charles Schwab Corp. said Monday its third-quarter net income rose 77 percent as more investors turned to the company’s advisory services amid increased market volatility and stock trading increased.
The San Francisco-based company posted net income of $220 million, or 18 cents per share, compared with $124 million, or 10 cents per share, a year ago. The year-ago profit was $218 million excluding certain charges.
Revenue rose 11 percent to $1.18 billion from $1.06 billion a year earlier.
The results missed the estimates expected by analysts surveyed by FactSet. They expected earnings per share of 19 cents and revenue of $1.19 billion.
Shares of Charles Schwab fell 81 cents, or 6.4 percent, to close at $11.94 Monday. They’ve traded between $10.56 and $19.69 in the past 52 weeks.
Client assets grew 7 percent to $1.58 trillion, which includes $655.4 billion in the investor services segment of the business, which was up 2 percent from a year ago, and $640.1 billion in adviser services, up 5 percent. Other institutional services assets grew 30 percent to $280.9 billion.
Clients opened 191,000 new brokerage accounts during the period, up 14 percent. The company ended the quarter with 8.5 million active brokerage accounts, 769,000 banking accounts and 1.46 million retirement plan participants.
CEO Walt Bettinger said the business environment weakened further in the third quarter, but clients stayed with their long-term investing plans.
“Their cash holdings at Schwab remained close to pre-crisis levels, and they were consistently net purchasers of securities,” he said. “Our full-service capabilities were in demand during the recent quarter as enrollments in our advisory solutions continued at a strong pace.”
Net interest revenue jumped nearly 14 percent to $443 million from $387 million. That gain was largely the result of growth in interest-earnings assets. The average rate earned on those assets was 1.82 percent in the latest quarter, slightly below the 1.89 average in the year-ago quarter.
Net trading revenue grew to $248 million from $182 million.
Expenses fell to $821 million from $864 million.
Bettinger said effective expense discipline will be key to the company’s near-term profitability as economic conditions remain challenging.