Bullish on Yesbank

MSN1979

Well-Known Member
#24
Yesterday's close at 240 was bullish for yes bank. Today the range high was not broken but still close was higher at 247 or near, is it still bullish?
 

protrade

Well-Known Member
#25
Its actually a perfect takeover target at the moment. For someone like a Mukesh Ambani!!

Internal shareholder disputes. Management in flux. Stock trading at ridiculously low multiples. A simple cash infusion could dramatically alter the scenario. And considering stock is available dirt cheap, that cash infusion is literally the difference between where the stock was trading 2 months back to now. So its pretty much free!
 

protrade

Well-Known Member
#26
Ashok Chawla’s chargesheet has been public knowledge since July. And his quitting as Chairman of Yes Bank must be a positive. It’s evidence of the ridiculous knee jerk behavior of Markets that sees Yes Bank down on this news!
 

protrade

Well-Known Member
#27
Looks like Rana Kapoor has given up ambitions of being Chairman - hopefully, with him out of picture, things the clouds over Yes Bank should clear, the promoter feud should settle, and bank can start clean up in earnest.

In any case, market is overreacting. ICRA and CARE rating cuts were just delayed reaction to the news flow. Doesnt make sense for stock that had already tanked to tank further! Also, Yes Capital has nothing to do with Yes Bank - it is just the vehicle used by Rana Kapoor to hold his promoter equity. So even if there are some dicey deals in Yes Capital, in short term the confusion will get sorted out and should not have any impact on Yes Bank.

All said, this is a good opportunity to get in to Yes at good valuations.
 

protrade

Well-Known Member
#28
Yes Bank drops 10% since yesterday open - because they only shortlisted names, haven't finalized yet!

Market thinks they will never finalize names? That the dispute between the promoters is so great that the bank will go down the toilet?

Somewhat similar story happened with ICICI - stock was weak as long as the clouds were swirling over Chanda Kochchar, and moment she was out of the picture, stock rallied 24% within weeks. I expect somewhat similar story in Yes - except that the pop could be even bigger, considering how cheap Yes Bank is!
 

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