You got to beat that drum much harder if you want the hoards of Foreigners now deserting to stop dumping your favourite stock. As the 2nd last in Pvt Bank performance IBN can only drop to the last position now.
Based on the charts you can see that the era of Scam and Scams has been replaced by Hype and Hype.!
Its the retail Investor thathas ahard time understanding the steel Industry. Globally steel capacity exceeds demand by 30%. In addition plants are getting older and have huge Carbon Tax penalties that they cannot address. Further the Indiustry has messed up the environment . Govts cannot afford to shuth them down because the workers will be left high and dry. The Govts are prone to look the other side .
Investors are in a jam because the stock is going no-where and is likely going to drift lower for atleast five more years.
Good ; they dont need foreign investment.
That is another reason, Foreigners are liquidating their holdings there . IBN has been tracking down ; the P/E ratio is moving down as risk increases.
Not quite. I trust you know that MF's in Asia are now net sellers of INJUN Bank stocks because the Bank CEO's have no accountability wrt rates or losses both of which are now on auto pilot mode by the new Govt.
In the case of rates, they were specifically told to lower their rates and in return the Govt has allowed them to convert their losses into shares on their books conversion being the amount loaned.
That is S.Asia, where the rules change on a dime. The latest is Taxing gains of NRI's at source.
Not true. The Steel Cos are in a bine.
The Govts will not allow these Co.s to close inefficient plants as they need the votes from those employees.. If the Co. tries the Govts will bankrupt them by charging them in civil courts for the clean up cost ; a huge liability not shown on the books and which exceeds their Asset base.
MT cajoled by Wall St. and his ego overpaid and overbought. There is no way for the Co. to rise from these ashes until Govts. allow them to close down a few plants and free them of their liabilities (Most unlikely).
Show me the way out may prove a better solution.!
The new 10 Flavor Organic Vegan Mac that is sold in India is said to be the rage with the local foodies. .
I was told that since eating/ sale of any meat is not allowed in Mumbai & the state.,MCD vegan sales are off the charts.
Not only +ve but also rich
This wil thus l ensure that the redistribution of wealth being undertaken by the Shorts can be completed as planned.
IBN has underperformed the Sensex and is the last of the pVT Banks wrt annual return.
There has to be a reason. It is structural. Their loan portfolios are less secured and are thus exposed to possible losses It has now resorted to converting those loans to stock for perpetuity (a practice that defies accountability; which Investors detest.
The Bank certainly has great potential if it can steer away from playing footsie with the Govt. Unfortunately that's not likely.
Start of the troubles for Investors..
Selling infrastructure Bonds guaranteed by the Govt was tried out before in China & Japan. It was also tried out in India a few decades earlier as a base for Insurance. All these Bonds collapsed during a melt down and became worthless when Interest rates soared due to inflation.
Foreigners will stay away since the currency rate cannot be sustained due to rising demand and shortage of power and resources.
The Govt is now relying on Foreign capital for such projects because they know the locals wont touch those Bonds because most people refuse to pay for infrastructure and would resort to cheating the system.
Few Investors understand MT's predicament.Egged on by his big ego & Wall St., MT owners paid big bucks for Plants and mines hoping to establish a monopoly.The Chinese who are the dominant player dropped prices killing MT.
Many of the plants cannot be shut down because Governments need the votes of their union members and they can enforce that by threats of legal action for cleanup costs which will bankrupt the Co.
You are right. Surfaxin & Aeosurf does involve Billions of Atoms. and for a dollar you do get a good quantity of them. Unfortunately like hot air they have no value because no one wants to be the guinea pig. The Co. has no money to lure newly born babies to try it for cash incentives.
You may bang your head but we have seen the high for 2015.
Because of the swings , IBN offers more as a trading vehicle in lieu of an investment.
The swings off the high are now 40% which indicates a short holding period by Investors.
The new Govt is relying heavily on Banks and Foreigners to buy their Infra structure and Green capital debt. There is no return in these investments as the Public are so used to subsidies they will not accept higher costs passed on to them. In addition, because of corruption, Banks are nudged to making bad loans and then accept their conversion to worthless paper which you the Investor must accept.!
The Govt is unwilling to raise Capital thru taxation which is most essential to ensure steady progress. Instead the PM is planning another trip abroad with a bigger bowl .
IBN is resorting to conversion of default loans into shares of those Cos and holding them on their Books at therate paid. This is a very old technique that is never popular because there is no market for that worthless paper.
They must claen up their act if the Bank has to move up.
Foreigners are reducing their Indian Holdings.The Govt there is full of m/t boasts and talk. They lack any long term investment plan and instead keep hoping wealthy Foreigners and NRI's can be lured to make long term commitments which they know will be worthless due to inflation down the line.
To move forward IBN must immediately clean up its default loan portfolio.