Subra did you see the RBI note about Hdfc bank?

Oh yes I got at least 12 forwards on WA…mostly from one ‘strategist’. So yes I was forced to see it, and read it.

It has poor scores on internal audit, operational risk, risk governance….

Subra: Yes I saw all that…so what are you asking me?

Should I sell off my Hdfc bank shares?

So, Hdfc bank is in some trouble?

Subra: Yes, I guess.

I sold it. I think there’s going to be fines and regulation and stuff.

Subra: Well, yes, this may have  already started…

It’s going to be bad.

Subra: Okay, but Hdfc bank is up like 30 percent this year, with bad headlines regularly, so…are you referring to some new sort of troubles? 

Really?

Subra: Yes. It’s doubled the performance of the Bankex. So you don’t think thousands ( if not millions) of professional investors have the same information about this that you have? You don’t think this reality has already been digested and priced into the share price ? I mean, if you and I are talking about something in Nerul, you don’t think the market is already fully aware of it?

But Subra, I have already sold the share at 2250…what do you think should I buy it back?

Subra: I don’t give equity market advice – you see I don’t have a Pms license. Sorry.

Subra: tell me what more do you know about Hdfc bank?

Well not much except that I bought some shares about 5 years ago because you had written nice things about this bank…so I bought 55 shares. Now I am making some money. However, did you see it has CRASHED? FROM 2500 TO 2250? this is a huge fall is it not?

Subra: did you know it has beaten the bankex 2x over the past 5 years?

Is that good? I was wondering whether I could sell Hdfc bank and buy Shriram Transport Finance or Equitas

Subra: Oh so you are asking me for Portfolio advise? I can’t give..but let me ask you something. Are the Hdfc bank numbers worse than Icici, Axis, Yes,…and other banks?

Which numbers? Well in the past 2 days only Hdfc bank has fallen, not even Yes bank for which you have so much contempt.

Subra: So do you want to just sell or even buy put options?

Not sure. Do you think price will fall from 2300 to 2100 or 2000?

Subra: If you want to sell..you must be having some target in mind no?

No sir I am not sure….

Subra: I may sound arrogant, but let me give you some advice. To me you look like Alice in Wonderland. You have no clue where you are, what you are doing, why you are here..you read some article of mine and bought Hdfc bank shares. You are sitting on some profit – maybe you have losses in other parts of your portfolio, I do not know.

Remember what the cat told Alice?

When you don’t know  where you want to go…you will get there.

Go and enjoy. I have  club called “voluntary contributors to the broker welfare fund” – you get automatic membership. Congrats.