Tuesday, July 8, 2014

Insurance, LBL

Rajesh Sharma

1. Yes, Crest ji, for long, I have the opinion that growth in insurance is a mix of natural reasons and doctored ones. Hence, this sector, I have been believing vulnerable. Some weeks ago, I had written a post mentioning that the investment managers in BFIs may be involved in sponsored buying and NRB should investigate in this matter. I have no reliable source to conform the Bizmandu news but if it true, there could be major correction in insurance sector and BFIs would suffer tremendously. I think only a tiny fraction of insurance shares belong to ordinary share holders. 2. I am not sure if LBL is a blue chip company. Two years back, I had done a small study and it appeared within 12 safe and secure companies. I will repeat this exercise soon and see if it stands there. For your information, I am always critical of LBL management. This man Khetan may do any wrong with LBL for his benefit. Even being critical of Khetan, I own a small quantity of LBL shares and it has been ok till now.

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