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basant
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   Posted: 02/Jun/2008 at 5:23pm |
Originally posted by rakeshmehta48
Vivek
Any views on PS Banks. Many of these are available below book value with reasonably good dividend yield, like
Andhra Bank: BV 77, MP 74, Div 4
Allahabad : BV 117, MP 80, Div 3
Syndicate : BV 77, MP 67, Div 2.80
Canara : BV 236, MP 212, Div 8
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Case of cheap stocks becoming cheaper. Ever since I started understanding banks the PSU boys were cheap and the private banks were costly. SBI was cheap since 1993 and HDFC Bank costly from 1995!
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Vivek Sukhani
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Posted: 02/Jun/2008 at 6:08pm |
Andhra, allahabad, Canara, corporation I will go for. Will wait for SBBJ and SBT to become more freely available.
Banks as stocks shall be bought during depression. I have made a ten bagger in oriental in no time. My dad is standing on a 15bagger in case of SBBJ and SBT and is now making almost a third by way of yield on his investment price.
However, it has all been a case of timing.
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jain208
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Posted: 02/Jun/2008 at 6:40pm |
Originally posted by basant
Case of cheap stocks becoming cheaper. Ever since I started understanding banks the PSU boys were cheap and the private banks were costly. SBI was cheap since 1993 and HDFC Bank costly from 1995! |
PSU banks have been cheaper because of various factors like govt. interference, etc. But still SBI has been a 5-bagger since Jan 2003, not taking into account the dividends, and thats not bad at all.
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basant
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Posted: 02/Jun/2008 at 7:23pm |
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That is less then what the sensex has delivered since 2003.
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jain208
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Posted: 02/Jun/2008 at 7:39pm |
Originally posted by basant
That is less then what the sensex has delivered since 2003. |
Not exactly. Sensex has grown around 4.7 times, without dividends, in the same period.
01/01/2003 02/06/2008 Returns
Sensex 3390 16063 373%
SBI 284.6 1394.85 390% +
dividends
Please correct me if the data is wrong, or I have missed something here.
Abhishek.
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basant
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Posted: 02/Jun/2008 at 7:57pm |
I was speaking from raw memory! But a stock suffers from systemic and unsystemic risk whereas an index suffers only from systemic risk so for that unsystemic risk we need significantly higher incremnental returns. There are several MNC stocks that perform well during a bearish phase because no one sells them - but over a period of time they have underperformed and destroyed wealth (through opportunity loss). 
You can add a 2%*5years dividend yield to SBI to get the result but overall that was a risk not worth taking!
I like playing for big gains and hence consider opportunity cost as the biggest yardstick to investments!
Edited by basant - 02/Jun/2008 at 8:00pm
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Vivek Sukhani
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Posted: 03/Jun/2008 at 4:52pm |
Allahabad's IPO came in 2003 at 10 rupees. Its still a 8 bagger. the stock by this time would have become free by way of dividends.
Dad bought State bank of bikaner and jaipur at 281+brokerage in 2002. the stock has already fetched us more than 400 bucks as dividend and is standing at 4400.
Punjab national bank's issue came at 48. Today its nearly 470 and has climbed upto 720.
I personally bought oriental Bank at 33. And got rid of a major part at above 300.
Vijaya, union, Bank of india.....I made 3-4 times in each one of them before selling them off for other stocks.
Dont know for others, but my personal career in investments have been built on PSU stocks.
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Vivek Sukhani
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Posted: 25/Nov/2008 at 4:57pm |
I believe we are at the cusp where PSU banks should be looked at as emerging opportunities.
My choice among them , not necessarily in the same order will be:
Corporation
Canara
Bank of Baroda
Bank of India
Indian
Allahabad
Andhra
What do members feel about these banks?
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Jai Guru!!!
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