Whether the perpetrator of fraud is coming back or not, you can have your share back from PNB ( Punjab National Bank ). Finally after putting a base near Rs 70, it is turning a corner. I have accumulated between 70 – 90 range during the downfall and now looking forward to reap the rewards.
Hopefully, election optimism rally in Indian stocks along will push the beleaguered bank above 100 level. Initially I am looking for 120 – 140 range so let’s see.
For India, I usually stick with my list of 15/20 stocks and hardly move outside those ( comparatively not easy to manipulate kind of ) stocks. But PNB was kind of juicy opportunity and couldn’t resist to dabble in it. Thesis to buy was simple based on following assumptions,
1) Indian government can’t let a bank go out of business due to such blatantly outrageous fraud which they must have detected much earlier ( not just detected but could have prevented 😉 )
2) If bank has sufficient funds to cover and if it is not going out of business then, ultimately stock will recover :). But yes, finding the bottoming level is crucial. And honestly, I don’t know what could be the bottom. But was just thinking somewhere around 50 but well, it didn’t go below 70 so no complains. And how I came to think about 50? LOL, just out of thin air :)) . Experience in market will boost your guessing power too 😉