September 2018 - Stocksbaazigar

I will never ever sell my Yes Bank shares tweets Rana Kapoor

29th January 201928th September 2018 by stocksbaazigar

One-man Army of YES BANK surrenders! Yes Bank Founder and CEO Rana Kapoor tweeted today that he will never ever sell his Yes Bank shares. In back to back 3 tweets today Rana Kapoor expressed his loyalty to Yes Bank after he realized that he won’t get any extension as a CEO and MD of Yes Bank. As directed by RBI he will step down on 31st January 2019. Earlier this Wednesday, Board of Directors of Yes Bank sought an extension of minimum 3 months and maximum one year for their CEO and MD Rana Kapoor. They gave a reason that Audits of Yes Bank needs to be done under his guidance. They also said that Yes Bank hasn’t found their Successor yet and it will take time to decide who will lead the bank. To complete the transition of leadership smoothly they tried to buy some time. But the Central bank didn’t approve it as they already feel that rampant Corporate Governance issues in Yes Bank have already made investors in this bank vulnerable. Reserve Bank of India is on the mission to bring reforms in the banking sector. Mergers of Public Sector banks and taking strict actions on Private Sector banks who didn’t comply with the disclosures of NPAs rule properly are some of the actions RBI is taking to reduce the NPAs in the banking system of India. After Nirav Modi scam Government too is going rough on Leaders who have made some dubious decisions in the past. Yes Bank’s Rana Kapoor too faced the wrath of central bank thanks to the discrepancy in the NPAs stated by Bank. Now it is confirmed that Rana Kapoor will step down on 31st January 2019 and RBI might bring Professional CEO from outside of the Bank to ensure the safety and trust of Investors. Tweets by Rana Kapoor on 28th September 2018 “Diamonds are forever: My Promoter shares of @YESBANK are invaluable to me” “I will eventually bequeath my @YESBANK shares to my 3 daughters and subsequently to their children, with a request in my Will stating not to sell a single share, as Diamonds are forever !” “Even after I demit office s MD and CEO of YES BANK, I will never ever sell my @YESBANK shares” “In this leadership transition at @YESBANK, I continue to remain fully committed to the interests of the Bank and all its Shareholders. I will fully be guided by the Board of Directors of YES BANK and Reserve Bank of India” Rana Kapoor, an Indian Billionaire is the Founder of private sector bank ‘YES BANK’ in India. He founded Yes Bank in 2003 after he received a banking licence from RBI. After 16 yrs of experience in Bank of America and 2 years in ANZ Grindlays, he decided to quit his job and become an Entrepreneur. He stated with NBFC first in 1998 and then Bank in 2003. Yes Bank became one of the largest banks in India in very short time. It gave 28% CAGR return to its investors. In 2017 he became Billionaire thanks to his 26% stake in Yes Bank. Currently, he holds 10%+ stake in Yes Bank and has tweeted that he will never sell his YES BANK Shares in his life.

Yes Bank shares tumbled to 52 Week Low price. What to do now?

28th September 201828th September 2018 by stocksbaazigar

Yes Bank at 52 week low, What to do in YES BANK now? It seems that the problems for YES Bank will not end soon. This is for the second consecutive day, YES Bank shares have fallen by more than 9%. Today on 28th September 2018 Yes bank share touched 165 on NSE today. It is said that Madhu Kapur has sold some shares (0.04% stake) of YES Bank in the market on 21st September. Yes Bank was trading at 319 when the RBI first questioned the discrepancy between the NPAs shown by Bank and the actual NPAs RBI estimated. There was a difference or misappropriation of about 319% which raised the alarm for all the Investors of YES BANK and they all started exiting the stock. YES Bank share corrected by 34% that day with low of 210 and closed near 226. On Wednesday Yes Bank Management sought an extension of at least 3 months for CEO and MD Rana Kapoor after the step-down date of 31st January 2019 decided by RBI. The share price was 2% up but couldn’t stay in green for long. Investors hoped that 200 will become support for YES bank and decided to bottom fish in the same. But share broke that important psychological level today and touched it’s 52 week low of 165 so far. What will happen in the share price in the future? The recent turmoil in NBFCs, HFCs and Financial Sector in stock has pulled Sensex down by more than 1100 points in intraday last week. The government can not afford big damage to Banking and Financial system of India before upcoming elections. Modi government has already announced Mergers of Public sector banks to reduce their effective NPAs. Major private banks like Axis Bank, ICICI Bank and Yes Bank are already facing the Leadership Crisis, as none of them was prepared for the untimely exit of their CEOs/MDs. But Corporate Governance issues have forced them to step down before completion of their tenure. Same is true for Yes Bank. In the Article of association of the company, there is a clause that Rana Kapoor cannot be removed from the Managing Committee/ Board of the company. So directly or indirectly he will lead the organization in the future as well. Therefore once the successor/Leader is confirmed stock will see good rally again. What to do in YES Bank now? Valuation-wise YES bank was very expensive stock above 300 (post-split). 28% CAGR growth has made many Investors rich in this company in the past. As this stock is available in cheaper valuations sooner or later good buying will emerge in this bank. Traders can keep Stop Loss of 180 and Buy it for the short team targets of 200, 220 Investors should accumulate this bluechip stock by nibbling small quantities ( as we can’t predict exact low level, let’s wait for the double bottom structure to confirm the exact level to enter the stock if you want to buy lump sum in one shot) Disclaimer: Please consult your financial advisor before taking any investment decision. This post is only for educational purpose. I am NSE’s Certified Investment Analyst and can give my views on Investment. I am not SEBI registered Advisor so I can not give any Recommendations. Don’t consider my views as my recommendation. Thank you.