Make a 65% gain while this enormous bank cuts over 30,000 jobs!
It's at it again.
Last year former CEO Anthony Jenkins cut 19,000 jobs at Britain's Barclays Bank.
And now this 300 year-old institution, is planning to cut over 30,000 jobs again in the next two years. This will take the workforce to under 100,000.
You see, the bank's been struggling. In April it reported a huge decline in profits. Here's a little something I read in the newspaper.
"This redundancy program, which could reduce the bank's global workforce below 100,000 by 2017 end, is considered as the only way to address the bank's chronic underperformance and double its share price"
So what does it do to save the bank? Barclays will cut its workforce to address the banks underperformance. And when the deed is done, they expect the share to double in price.
And you can get in on the action and bank a 65% gain, without taking your money overseas or even opening a new stock broker account.
We have our own Barclays Bank here to profit from in South Africa
Barclays Africa Group is listed on the Johannesburg Stock Exchange under the ticker: BGA.
Two years ago this time, Absa Group and Barclays African Operations joined forces. And at the beginning of August, Absa changed its name to Barclays Africa.
But what’s important is that Barclays Plc. Owns 62.3% of BGA. So whatever happens at Barclays international, can have a strong impact with Barclays Africa Group here. And you'll notice a strong correlation between the two charts.
It looks like BGA is going back up in the next few weeks
In February, BGA hit its all time high at R203.71. But then things turned around. And for the last five months, BGA did nothing but move in a sideways trend.
You can see in the chart that it’s been moving in a range between R196 and R172. But in the last few days, BGA has broken out of its downtrend (black line) and momentum has turned back up.
Demand kicked back in and it looks like the investors are responding positively to firing Anthony Jenkins and implementing the new measures of cutting the workforce.
I expect BGA to rally back to R200 in the next few weeks. This might be a 6.5% rally but you can bank a 65% gain.
How you can I turn a 6.5% into a 65% whopper?
You can simply use the power of Contracts for Difference (CFDs) to bank this kind of gain. You see with a gearing of 10 you’ll be exposed to 10 times more shares than the money you put in. So you can turn a 6.5% gain into a 65% gain in just a few weeks.
If you’re feeling unsure about how CFDs work and you don’t want to make a mistake, then you can always join my Red Hot Storm Trader service and I’ll show you everything you need to help you get started.
“Wisdom yields Wealth”
Senior Editor: Trading Tips
Head Analyst: Red Hot Storm Trader
Author: 94 Top Trading Lessons of All Time