"I hold it to be the
inalienable right of anybody to go to hell in his own way."
—Robert Frost (American,
1874-1963)
Word for the day
Bossdom (n)
The status, influence, or
power of a boss, especially a political boss.
Malice towards none
..in the meantime Imran Khan
loses his "most eligible bachelor" status for the third time!
First random thought this morning
BJP has totally snubbed the Canadian PM on a state visit to India.
The all embracing PM Modi did not go to the airport to receive the
Canadian head of state, something he has done for heads of much lesser states. Even
UP CM did not accompany the Trudeau on their visit to the Taj Mahal.
The indifference is reportedly due to his perceived support for
Sikh separatists in his country. But then our PM did embraced Pakistan PM on
more than one occassion.
Well, it's investors' problem!
Almost every day a new multi crore fraud is coming to light. Many
more will get highlighted as more and more resolution requests are made by
beleaguered lenders under new bankruptcy law.
Many yet to be caught "willful" defaulters are also
actively seeking refuge under the protective umbrella of the new legislation.
If investors did not anticipate this, it may be their problem, to
some extent.
If someone did anticipate the crisis and realized that the
conditions shall materially worsen before the self corrective process
envisioned under the new resolution mechanism begins to work properly , but
waited for a miracle or a greater fool to come forward to buy his/her junk
stocks, well that is largely his/her problem.
If someone had bought PSU bank stocks on 25th and 26th October,
2017 (paying 30-60% higher price as compared to closing price on 24th October,
2017), based purely on the government promise to provide additional capital to
these banks, indubitably, the fault lies totally at his/her doorsteps.
For records yesterday, in less than four months, the PSU Bank
Index (NIFTY PSUBANK) has corrected below the closing level of 24th October
2017, thus erasing all the gains recorded post announcement of bank
recapitalization.
The market perhaps has realized that the yet to be infused capital might
have already been lost
The worst part is that there has been Zilch effort by the market
regulator, SROs and analyst community to guide investors that the almost all
cases referred to NCLT so far are likely to end up in 30-60% haircut for
lenders. Equity investors in these firms stand NO CHANCE to get any residual
value.
The equity shares of these firms are not only trading, but trading
at much higher prices than these were prior to NCLT reference!!!....more
tomorrow
No comments:
Post a Comment