YES BANK : A falling Knife

Can anybody here make me understand what’s actually happening with Yes Bank? Every day the share keeps on tumbling down. For investors, it has become a falling knife. Is the situation really so bad or it’s just too much pessimism or Shorters hammering the stock down till no end. Anyways, as Keynes said, Markets can stay irrational longer than you can stay solvent.”

Many thought that the major part of problem would be solved after a new CEO is appointed after Rana Kapoor’s exit and his faceoff with Madhu Kapur will end. There is speculation that Yes Bank has stressed assets allocation linkage to companies like DHFL, ADAG and IndiaBull Housing. But in an interview, Ravneet Gill said they are no more negative surprises, and they have no links to ADAG, IBULHSG, DHFL.
For fast few days Rana Kapoor has been selling is his holding, leading to huge selloffs in the equity market due to promoters lowering his holding. Kapoor says he is doing so as to deleverage and pay off debts by Yes Capital.


@nithin, in your blog in late August, you said that over 2 Lakh Zerodha retail clients hold Yes Bank with 59% unrealized loss. Has that figure gone up for month ending Sept 2019?

Yes Bank market cap has fallen drastically. Now, it’s just 8000 crore, the lowest among Nifty 50 companies. I think it might be excluded from Nifty 50 in January when Index half-yearly reconstitution takes place.

@Curious-Investor the problem is much more than shorters. Something is cooking inside and another pmc bank in the making.

Without realizing that we are foolish to keep on averaging. It will join penny club

Beware of rbl bank too. Another yes bank

Unfortunately yes, it has gone up. It is I guess tough to resist temptation of buying a stock which is available at lesser than 90% in value of what it was at not too long back.

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So only I buy ETF no worry for long term guarantee its will not fall to zero , why i am choosing ETF
when i am trading in 2014 that time my dream stock in my mind to buy is , YES BANK , DHFL, HDIL ,DLF, INDIA BULLS, RELIANCE CAPITAL. RELIANCE POWER ,TATA MOTORS Etc…
all are went buzz these stock are in part of nifty50 sometimes , and good dividended yield also , luckily i never invest in any stock because fear in investing in single stock , recent times i am crazy to own RBL bank in the street every body discussed is next multibagger , but i did in invest ,
I am option trader whatever i am getting profit , I close my eyes and buy NIFTYBEES and BANKBEES no tension
its for longer for my child i keep non of any single stock i want to believe , if tomorrow hdfc bank any small bad news came means hdfc also will fall , better stick to ETF,

EVERY BUSINESS IS SPINNED WITH OTHER BUSINESS , If one colapse all others will get beat
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Averaging a stock its will not give a good sleep , Averaging Index ETF our money we will get it back , this is the lesson i learn from stock market and other trader ,

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Seeing many investors here fixated on Yesbank. I ought to insert a quote from Warren Buffet,

“There’s a lot of games I miss…”

The concluding wisdom from this quote is left open for the readers.