Wednesday, March 22, 2017

Comments/posts from a Facebook group Nepalese Investors' Bandstand (January 30-31, 2017)

Rajesh Sharma

(I had thought to add here the posts/comments from November 24, 2016 to January 31. 2017. But it was too difficult to retrieve the older posts from the Facebook Group I menetioned above. In future, if I will have time to go through time consuming process, I may update by posting here.)

1.    Chiranjibi Chapagain spent 18 years working in NRB, recently as a director heading its Pokhara branch. With an MBA (Masters degree in commerce from TU was named as MBA then) educational background and so many years of experience as regulator, he failed miserably as Head of Insurance Regulator in being sensitive to market. He unnecessarily brought the issue of non inclusion of paid up capital in insurance bill. That could be done without any fanfare simply ommiting that clause and inserting that that would be addressed through regulation/directives.
I am not sure he did it with other ill-motive or tried to be transparent or to show him as boss of insurance, but altimately he harmed the interest of investors in insurance sector immensely. He is the primary culprit for today's biggest fall in insurance sector.
May be, Minister Mahara hired him to do things like this as they need to amass insurance shares before they increase the paid up capital. Policy corruption is a major tool of insider trading.

2.        Just before the start of previous major bear and extraordinary fall, I had bought SCB shares at 7900 Rupees each. The very next day it had jumped to 9000. Then the fall started and when I realized that the fall is unprecidented, SCB's price was 5400. Giving serious jolt to my logical person inside, I decided to sell. But the price was already down to 4800. I sold part of SCB shares with heavy heart promising with myself that "Death is ok, surrender is not." After buying and selling other company shares still with loss, I again bought SCB shares at 3600 and added more till it came down to 1500.
       
      It finally settled around 1300. My average price per share after collecting bonus shares of a few years was around 1600. Then the market started moving up. My loss was nil in 2012 and then came the phase of good harvest. After the major fall yesterday, I calculated my profit and loss in SCB. It gave me reasonably good return of above 24% annually. I have not included the cash dividend it gave in-between.

     This way, I survived during the dreadful bear phase last time.

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