Check with the Pvt Hedge Funds list to clients for May 2016. There is no mention of any support above $15,
It was because of the overhyped new FDA approved drug.
There is no demand at the price set out earlier. They are forced to give it away free to entice patients to use the drug. If the demand is good they intend to slowly milk that cow.!
For the present, they get no rev only expense from that new Drug. Hence the sell off.
Nothing is amiss.
Earnings are flat; no growth announcement for 2016-17. There is a P/E contraction which means we are heading South for a new low.
My Broker had forewarned me & I reluctantly followed his advice which has come to pass.
You are likely to be right. We have seen the high for 2015. Time is against the Longs because of enviro consideration and escalating clean up costs.
These costs increase with time and have to be addressed one day.
Just analyse the DFA and you will see they are as bad as the State owned banks.
The only saving grace is that the Public are still depositing their savings with IBN and helping to maintain their Cap ratio.
Audi: Correct assessment. IBN is in a nepotism trap. The trap works as follows.
You are a privileged person with Party contacts.You approach your contacts asking them to recommend you to the Banker for a king size loan against an Asset which you prize three times the market value. You get a friendly Broker to come up with a fake bid for the asset at 2.5 times the going rate for a small fee but you don't sell.
Your contact tells the Bank CEO/Manager about a fabulous investment and how the Bank will be rewarded for the Make in India awards but he should be discreet as the asset is worth even more.
The Bank grants the mega loan . The client defaults after a couple of payments and the Bank then realises it was taken for a ride.
Banks in the East have a lot of such loans which they doled out hoping to get a few National awards and jobs for their kin in return.
Will result in more losses in coming weeks.
The only Country in the world with an ever increasing public sector is India. This has resulted in wasteful schemes and investments in which IBN participation is so eagerly sought by the Govt.
This is the main reason why the Bank continues to increase its NPA.
Don't confuse stating facts with bashing. Check my posts about the losses; there are more to come.
The CEO was sucked into the new Govt hype and GNP growth and promise of awards.It is exaggerated due to mortgage cost of distorted house prices.
She needs to be replaced.
The current loan loss due to defaults is the worst in 11 years. t is not over, there is more to come.
This is a result of pandering to request of the Politicians to lend their benefactors large sums against inflated assets. They lure the CEO and Mangers into believing they are serving the nation and have been placed on the list for the nations highest awards on their National day in Jan.
Just back from the East. The Chinese are going to dominate this field in 2 years with their new sequencer that is automated. They have the manpower and resources.
Our 2 US Cos will survive as minor global players because of the pricing and customer loyalty. That may be the reason for the short position showing little change even at this price level.
The art of shorting by Hedge Funds is based on sophisticated probability distribution and not inside info. That is why the Technical analysis are important when you are unable to discern rational logic.
My F.A advised me to quit as Hedge Funds had been short . She believes we are headed to $130 or lower to enable the Hedge Funds to close out.
This has been the pattern on 3 separate occasions in 2015.
My FA says its best to stay on side lines Creditors and shareholders might strip the Co bare in the coming months. The NAV is near -ve and the Creditors want an independent audit by an outside firm to determine the NAV.
I am now resigned to the fact we were taken for a greed ride.
The performance of the Banking sector and especially Public Banks and the Utility sector for the Quarter ending March is expected to be trail the rest of the other sectors.
IBN loan defaults are likely to grow but more slowly than before & GAP earnings could be flat to down due to default loans.
Growth is inflated due to inclusion of House prices/Mortgages and the cost thereof .The actual industrial growth is more like 2% net or less.