Final word on Yes Bank.

The YES bank story is still unfolding. I was wrong, there are cockroaches in more places than I had thought. Many more companies to whom YES has lent may default, especially if an economic downturn is impending. Evidence of sizable call writing positions, hundreds of...

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Why are Indian IT stocks at all-time highs?

Comfortable with recent trading successes, I find myself marveling at the current lofty valuations of TCS, Wipro, Infosys, HCLs. They are well-run, professional companies, cash-rich, but earnings for this sector peaked years ago, their growth rates are in the low...

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Looking for more “cockroach” candidates

Pleased with YES and looking for something similar, I come across DHFL. Another stock that has taken a serious tumble, from 400 down to 150. The media story is bleak, management keeps putting up a defense, they haven’t defaulted yet. Meanwhile, the ILFS saga is...

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YES-BANK: Part II. Cockroaches gone.

In early February 2019, YES BANK puts out a press release stating the company has received a notice of NIL divergence in NPA from RBI. Central banks all over the world do a periodic review of the asset quality of banks under their regulatory scope. Nil divergence...

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Yes Bank, Part I: The lonely contrarian.

Late in 2018, Yes bank catches my eye. This time I do homework, their last earnings report is full of disclosures about NPA’s. It feels like they are coming clean. There is a promoter back-story, the CEO and his sister-in-law have been in court cases for control, for...

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Beers with the neighbors.

On a warmish Friday evening, I am invited to drink beer with a couple of neighbors. As we talk and sip, I tell those I haven’t met that I am a financial economist, teach at IIM-B. Then you must know about equities, says one.  (Flashback to my neighbors in California...

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Yours truly a trading account.

In the time that has elapsed, I have also opened an online trading account in India. ICICI-Direct, one of the more expensive brokers my students tell me, colleagues say they are reliable. I am also teaching an MBA Investments Elective, and I feel the pressure even...

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Lakshmi Mills pays a nice dividend.

At another time, Dad asks me whether he continues to hold Lakshmi Mills. Sold it in May about Rs 4000 per share, Dad I say. That’s too bad, they just paid a 20% dividend he says, expecting to me to be mortified yet again!  But I am ready for this one. Dividends in...

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My first “bad” call: Borosil

There are about 30 stocks in Dad’s portfolio, laden with blue-chip large caps, companies that make things or provide raw materials for them. I locate his account, start looking at performance. I have been in India a few months now, watching markets, trying to learn,...

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Never dematted

Some months later, clearing out Dad’s cupboards, we find a pile of stock certificates. Many are cotton mills, paper companies in South India, 5 shares, 50 shares, dates ranging from 1948, never been through the demat process. Mr. efficient markets, these must be...

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Buy and hold is easy to say, but hard to do.

Think long-term, buy-and-hold, is the prescription of many investment books and textbooks, what I do with portions of my personal portfolio, but it is not easy when sitting on outsize multi-year unrealized profits. As an example, supposed you purchased something a...

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The beginning

I return permanently to India in 2014. Full of NRI determination towards parent seva, I ask my 90-year father if he has a will. He does not. Does mother know where everything is? Of course, she does not. After much pleading, we get down to list all his assets-car,...

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