I want to sell SBI @ Rs.10000 per share - Not kidding

Parv · #1 25th August 2007, 08:44 PM

Hi
I want to sell SBI @ Rs. 10000 per share. I'm not kidding, infact I'm very serious and I would stick out my neck and would like to point out my reasons for SBI to touch 10000 in the next 3 - 5 years.

1. SBI is the largest PSB in India.
2. SBI has allocated Rs. 1 Lakh crores for Loans and Rs.1 Lakh crores for bonds. If the interest rate increases, they make money through loans and if the interest rate decreases they make through bonds. (Insider News: 2 Lakh crores is not reflected in the financials yet and have to reflect on the paper before March 2009)
3. The face value is still Rs 10/- per share. Anytime the split is going to happen. The face value of Citibank is 0.01 cent and just imagine if SBI is split to 10 paise what will the rate be.
4. 80% of the share capital is still with the Government. Due to Basel 2 norms the Government have to dilute their stake.
5. Once the Basel 2 norms come into effect, any company in the world can buy any amount of shares on any bank in the world. Definitely all the major players will be hungrily eyeing on SBI.
5. They have a huge land bank and even 25 DLF's and Unitechs put together cannot match the land bank value of SBI. The most important part is they have land bank at prime places in most of the cities and towns. This is the most important point if we have to compare SBI with ICICI bank or HDFC bank.
6. SBI is also competing very vigorously in all areas of banking and are extending these services to the nook and corner of the country.
7. There are many people whom I know are doing SIP in purchasing SBI shares and I know atleast half a dozen people rolling over the futures every month since Rs. 550

I am also a strong believer in the fundamentals of SBI and in its future potential. I trade in SBI options too and all the profits I generate in SBI will be for buying SBI shares only. I stick to this theory and waiting to sell @ Rs. 10000 per share very shortly

Parv

ratan jain · #2 25th August 2007, 09:18 PM

Good go ahead....sell it at 10,000.

In fact I would say even 20,000 should be easily achievable

Hold for a few more days and 30,000 looks achievable...

In fact if it is shortly expected to reach 10,000 why not hold for long term and sell at 80,000 ?

Parv · #3 25th August 2007, 09:23 PM

Quote:

Originally Posted by ratan jain

Good go ahead....sell it at 10,000.

In fact I would say even 20,000 should be easily achievable

Hold for a few more days and 30,000 looks achievable...

In fact if it is shortly expected to reach 10,000 why not hold for long term and sell at 80,000 ?

Thanks Ratan
surely I'll keep a few stocks after selling the majority of my stock @ 10000 per share and wait for the stock to go to 80000

Parv

San2000 · #4 25th August 2007, 09:35 PM

Quote:

Originally Posted by Parv

Hi
I want to sell SBI @ Rs. 10000 per share. I'm not kidding, infact I'm very serious and I would stick out my neck and would like to point out my reasons for SBI to touch 10000 in the next 3 - 5 years.

1. SBI is the largest PSB in India.
2. SBI has allocated Rs. 1 Lakh crores for Loans and Rs.1 Lakh crores for bonds. If the interest rate increases, they make money through loans and if the interest rate decreases they make through bonds. (Insider News: 2 Lakh crores is not reflected in the financials yet and have to reflect on the paper before March 2009)
3. The face value is still Rs 10/- per share. Anytime the split is going to happen. The face value of Citibank is 0.01 cent and just imagine if SBI is split to 10 paise what will the rate be.
4. 80% of the share capital is still with the Government. Due to Basel 2 norms the Government have to dilute their stake.
5. Once the Basel 2 norms come into effect, any company in the world can buy any amount of shares on any bank in the world. Definitely all the major players will be hungrily eyeing on SBI.
5. They have a huge land bank and even 25 DLF's and Unitechs put together cannot match the land bank value of SBI. The most important part is they have land bank at prime places in most of the cities and towns. This is the most important point if we have to compare SBI with ICICI bank or HDFC bank.
6. SBI is also competing very vigorously in all areas of banking and are extending these services to the nook and corner of the country.
7. There are many people whom I know are doing SIP in purchasing SBI shares and I know atleast half a dozen people rolling over the futures every month since Rs. 550

I am also a strong believer in the fundamentals of SBI and in its future potential. I trade in SBI options too and all the profits I generate in SBI will be for buying SBI shares only. I stick to this theory and waiting to sell @ Rs. 10000 per share very shortly

Parv

Hi Parv
Excellent analysis Parv. Good job.
Definitely worth an investment I guess.

Sankalp

ivanboesky · #5 26th August 2007, 09:20 AM

Since the market discounts the future, dont you think if SBI was worth 10000, it would have been trading somewhere close to that number now? Its not some illiquid stock that depends on news to drive its price. Its very well researched too and all the above points you have made are known to the market. Unless you will hold the stock for another 25 years, where even a fixed income investment would earn you that much.

ratan jain · #6 26th August 2007, 10:21 AM

Ivan:

U dont understand

He wont need to hold for 25 years.....
He said it will touch 10,000 SHORTLY

FII's are really bufoons and idiots I think, they should sack all their analysts, and just buy SBI for these SHORT TERM gains.

And hey, if FII's take an interest in SBI, after reading this excellent analysis, a price of even 1,50,000 is possible in the MEDIUM term.

I think Parv should forward this excellent writeup on SBI to all FII's and Domestic fund managers........after all, even they should get this SHORT TERM opportunity

ivanboesky · #7 26th August 2007, 01:11 PM

Yeah, you are right Ratan. I missed the fact that the investment was 'short-term'. My apologies! :-)

Please provide more such 'short-term' opportunities for mere mortals like us!

kkseal · #8 26th August 2007, 02:15 PM

Guys he did say 3-5 yrs. Buy if that looks short-term to you.

Parv, putting all your eggs in 1 basket is something i would avoid; but if you're so sure - i guess it's fine.

Regards,
Kalyan.

CreditViolet · #9 26th August 2007, 04:12 PM

Quote:

Originally Posted by Parv

Hi
I want to sell SBI @ Rs. 10000 per share.

And I would like to buy it from you then for a target of 10010.

srisara · #10 26th August 2007, 05:59 PM

let us visit this thread after 3-5 years.

Satya

Similar Threads for: I want to sell SBI @ Rs.10000 per share - Not kidding
Thread	Thread Starter	Forum	Replies	Last Post
Is market may fall till 10000 level?	mahmeds2000	Equities	36	16th October 2006 09:40 AM
F & O use to buy and sell a share	jigs080806	Derivatives	23	1st September 2006 02:56 AM
Sensex breaches historic 10000-mark	TATrader	Current Affairs	3	6th February 2006 11:56 PM
Sensex At 10000	kaizartrtr	Equities	52	27th November 2005 07:07 PM
Sensex At 10000	kaizartrtr	Introductions	0	29th September 2005 09:13 AM