Lot more pain. The P?E is way too high for the risk. The CEO & her Cronies should be turfed out. They keep giving loans to party sponsored friends in return for promises of National awards.
Look at HDB. They have kept to their fundamentals and are prospering.
Don't rush. More bad loans expected if monsoon is week. The P/E is way too high for the risk.
A correction of 20% from current levels is your downside risk for the next 4 mths. The upside is less than 5%.
Check your posts . You have been persistent in this rant for over 6 mths while IBN continues to tank..
On the other hand check out when you were warned of the impending decline due to bad loans and inept Management .
Was -ve at $10.20. Now hoping for a low at $5.20 by April when another round of bad loans surfaces. Nepotism and corruption are intrinsic to the Banking sytems in the East.
Wall St. is laughing. Mr M with his big ego got himself snared by Wall St. There is no escape now. They can issue more shares but it wont dent the trend.
The best solution is to liquidate the assets now in a planned way. The Book value could be below 40c due to clean up litigation.
Check out these 2 Pvt sector Banks and compare their performance.
The Mgmt of the 2 Banks is different. The Mgmt at IBN continue to suffer huge losses. These are loans to Got sponsored clients who are default professionals. The Mgmt at HDB are professionals with a very strict code of conduct.
You may well ask why. The answer is that the Govt keeps promising them (IBN) National awards in their Make in India campaign which is now languishing.
Asian Steel Mills only customers are Europe and the States. They are stepping up their dumping at below cost.
The workers in Europe are now protesting in Brussels . The U.S Industry should do the same..
They now need to issue fresh scrip to maintain their Capital ratio which is down by 5%. They would prefer to do it thru a convertible bond which means existing shareholders could be affected. The market senses that.
The CEO may need to be changed as they are in bed with the Govt and their cronies.. IBN was a good Bank gone sour playing Yes Sir with the Authorities.
IBN is facing the biggest NPA default in its history. The March Q could see another spike to 5% default by Corporations.
All these big loans to Corporations have proved a disaster. Time to get rid of the senior Mgmt.
This Subhead covers the NPA which is now 8.6 units against a Net profit of 61 units. It used to be below 3% at one time.
The Bank is now proposing to issue a Bond to beef up its Capital structure since they have more losses to account for.
No hurry; don't worry. I am in the same boat waiting for the Hedge Fund letter to their Pvt clients advising them to cover.
More room to run.!
No; Company restructure to cost +$30m over 3 years. Cash flow likely to be -ve during this time. I would recommend a BUY later in 2016/17.
Phase 3 of the Alzeimer study is due 2016 . I expected Pvt Hedge fund to close out their positions but that has not happened as yet.
Do they have the inside track; I wonder.
They face a big loss because of Consolidation cost with their acquisition. They expect 2 -3quarters of lossbefore the turn around. The pvt Hedge Funds who may have an inside track have been short since the aquisition. I expect it to stabilize around $12 or os. Most small -Meduim Cos see a low near 1/3rd the high.for that year.
Patience will be rewarded but timing is important when it come to small fry.
The lost a key Customer after the acquisition and a few Product launches due 2nd half 2016 are delayed whilst restructuring costs are up. Their turn around date is 2017.
The net Assets w/o Intangibles is about $0.75bn while the Liabilities are over $1.0bn. Because of this the NAV w/o intangibles (No one can value) is -ve.
Hence theco is being heavily shorted by those who understand value.
lonbut: You have it right. Interest rates are expected to climb and Cos with debt will see their P/b drop.
There is no Book value if the Intangibles are discounted .Hence the slide.