SEYLAN BANK PLS HELP

I bought 30000 Seylan bank X shares @ Rs 51.00 few months ago anticipating a banking sector run. But later realized that i have bought them at the peak.Now i am having a loss of Rs 454,000/. In order to mitigate the loss what is the best possible option.
EXPERTS PLS ADVISE!!!!!!!!!!!

1. To subscribe the rights @35.
2. To sell my other portfolio which is in profit and buy more SEY X shares at present price to average the price and sell later.( i can buy another 60000 shares if i sold oters with profit.
3. Just wait and see

YOUR EXPERT COMMENTS ARE WELCOME.

wcg1976 wrote:I bought 3000 Seylan bank X shares @ Rs 51.00 few months ago anticipating a banking sector run. But later realized that i have bought them at the peak.Now i am having a lost Rs 454,000/. In order to mitigate the loss what is the best possible option.
EXPERTS PLS ADVISE!!!!!!!!!!!

1. To subscribe the rights @35.
2. To sell my other portfolio which is in profit and buy more SEY X shares at present price to average the price and sell later.( i can buy another 60000 shares if i sold oters with profit.
3. Just wait and see

YOUR EXPERT COMMENTS ARE WELCOME.

My advise is to buy 2000 at 37 level and subcribe to all rights you will be allocated..

Cant give any advice regarding selling of other shares without knowing what are those.

wcg1976 wrote:I bought 30000 Seylan bank X shares @ Rs 51.00 few months ago anticipating a banking sector run. But later realized that i have bought them at the peak.Now i am having a lost Rs 454,000/. In order to mitigate the loss what is the best possible option.
EXPERTS PLS ADVISE!!!!!!!!!!!

1. To subscribe the rights @35.
2. To sell my other portfolio which is in profit and buy more SEY X shares at present price to average the price and sell later.( i can buy another 60000 shares if i sold oters with profit.
3. Just wait and see

YOUR EXPERT COMMENTS ARE WELCOME.

I am no expert. I would select option 1 to buy all allocated rights and also try my luck and request for additional shares of SEYB rights @ rs. 35/= . Then you can average and recover upto some extent. [I may be wrong and do your own judgement ]

Good luck.

join the club mate.
We ben discussing this issue over n over again.
I also brought at 48 thinking banking sector will show some colours. In seyb everything got messed up due to the stupid right issue. I had my hopes till few days back that, directors will amend the right issue n make it bit attractive atleast after seeing da prices falling. I did avg my cost by buying at 40 which made the things worse. Never thought it will fall down to the level of the right issue.

We can actually get the entitlement to the rights n sell the rights in the market. Tht may mitigate the loss a bit. Recently i saw some big collection going on. So lets hopw for the best. Might pick up near rhe xr date. Sure got ur dividends. But to be honest i think this may take long time to recover. If ur a long term investor, u r the man......

wcg1976 wrote:I bought 30000 Seylan bank X shares @ Rs 51.00 few months ago anticipating a banking sector run. But later realized that i have bought them at the peak.Now i am having a lost Rs 454,000/. In order to mitigate the loss what is the best possible option.
EXPERTS PLS ADVISE!!!!!!!!!!!

1. To subscribe the rights @35.
2. To sell my other portfolio which is in profit and buy more SEY X shares at present price to average the price and sell later.( i can buy another 60000 shares if i sold oters with profit.
3. Just wait and see

YOUR EXPERT COMMENTS ARE WELCOME.

Well..... wcg1976 you are in a very tough position.
If I were in your position I would sell 6000 SEYX shares at the open market (with a loss of nearly Rs100,000) & then subscribe rights @ 35 (subscribe right for 24,000 shares)
investing more money is not really worth with SEYX. Because you may have to wait long time to get the benefits of current restructuring phase.

I had some SEYB.X which I bought at 50. But this was only and 2-3% of my portfolio.
Later with the rights issue announcement it crashed. Expected it to stop somewhere and bought more till it went down. If I am to hold on to them, I will need more money to subscribe for rights.
So I sold part of it at the best possible price these days for a loss and invested it elsewhere.

So yes, if your others shares are good, don't sell them. If you buy more to average, you will need more money to subscribe for rights

I am also holding Seyb X at an avg cost of 45.60. I will be closely monitoring any developments within next couple of weeks and then decide what do to do with this.

Anything can happen within this couple of weeks. The price may be manipulated to look the rights attractive or those who are in short of money to subcribe for rights may start dumping.

We also have to option to trade rights although rights may not attract a good price unless the share price appreciates from current levels.

I have no one else to blame other than the directors of this company for putting their minor investors in this situation.

While all the retail stake holders are worried over the SEYB issue, I see some thing different way - may be correct or wrong but the whole episode smells my thinking is to be little possible

Earlier the CBSL tried to find an investor to take over/Merge the SEYB and failed its attempt due to undisclosed reasons.

Now I guess the "Directors by sticking into Rights issue with its original prices & quantities and they are upto a pre -arrangement of subscribers [could not be one subscriber as the CBSL banking act do not allow any party to acquire more than 10% of a running Commercial bank]..who will together take the control of SEYB & later go for a merger ..which was the willingness of the CBSL

to support the pre-arranged investors the SEYB N share price @ the trading floor is kept low by purposely [follow the pattern of dumping of SEYB shares at lower prices every time SEYB get momentum & start a upward trend]..by this way the present share holders will be discouraged & will not subscribe to the Rights & the said pre -arranged party has the opportunity to get the maximum by the way of additional applications....!

[While SEYB N is kept low X will also be traded much lower]

Best option at the moment is to hold the shares & to subscribe to the full allocation of rights..if my thinking goes correct then after the issue SEYB will move up very fast & the PPL who was holding+subscribed to R will be the winners ...But never buy more & more thinking to average the cost...it's not a good practice I guess...!

CSE Today wrote:While all the retail stake holders are worried over the SEYB issue, I see some thing different way - may be correct or wrong but the whole episode smells my thinking is to be little possible

Earlier the CBSL tried to find an investor to take over/Merge the SEYB and failed its attempt due to undisclosed reasons.

Now I guess the "Directors by sticking into Rights issue with its original prices & quantities and they are upto a pre -arrangement of subscribers [could not be one subscriber as the CBSL banking act do not allow any party to acquire more than 10% of a running Commercial bank]..who will together take the control of SEYB & later go for a merger ..which was the willingness of the CBSL

to support the pre-arranged investors the SEYB N share price @ the trading floor is kept low by purposely [follow the pattern of dumping of SEYB shares at lower prices every time SEYB get momentum & start a upward trend]..by this way the present share holders will be discouraged & will not subscribe to the Rights & the said pre -arranged party has the opportunity to get the maximum by the way of additional applications....!

[While SEYB N is kept low X will also be traded much lower]

Best option at the moment is to hold the shares & to subscribe to the full allocation of rights..if my thinking goes correct then after the issue SEYB will move up very fast & the PPL who was holding+subscribed to R will be the winners ...But never buy more & more thinking to average the cost...it's not a good practice I guess...!

Yes this is a valid point and infact a possibility. The possibility that Seylan bank may have done a pre-arrangement for their rights was discussed many times in this forum.

We have to wait and see for more clues before coming into any conclusion.

+ rep for elaborating this point further for the benefit of all who are stuck with this share.

CSE Today wrote:While all the retail stake holders are worried over the SEYB issue, I see some thing different way - may be correct or wrong but the whole episode smells my thinking is to be little possible

Earlier the CBSL tried to find an investor to take over/Merge the SEYB and failed its attempt due to undisclosed reasons.

Now I guess the "Directors by sticking into Rights issue with its original prices & quantities and they are upto a pre -arrangement of subscribers [could not be one subscriber as the CBSL banking act do not allow any party to acquire more than 10% of a running Commercial bank]..who will together take the control of SEYB & later go for a merger ..which was the willingness of the CBSL

to support the pre-arranged investors the SEYB N share price @ the trading floor is kept low by purposely [follow the pattern of dumping of SEYB shares at lower prices every time SEYB get momentum & start a upward trend]..by this way the present share holders will be discouraged & will not subscribe to the Rights & the said pre -arranged party has the opportunity to get the maximum by the way of additional applications....!

[While SEYB N is kept low X will also be traded much lower]

Best option at the moment is to hold the shares & to subscribe to the full allocation of rights..if my thinking goes correct then after the issue SEYB will move up very fast & the PPL who was holding+subscribed to R will be the winners ...But never buy more & more thinking to average the cost...it's not a good practice I guess...!

I mentioned this possibility before in another thread. Don;t think it caught anyone eye at that time. Below is what I said on April 16th

"Regarding SEYB,

I am not sure on this ( please don;t quote me) , but am not sure whether SEYB hassupport some pre arrangement with institutional/HNW support to subscribe for their rights completely at their offered prices if the retailers fail. If by XR date if the SEYB price don;t not go up to make the right issue attractive that means there is no push. In turn it could mean what I said before. The way SEYB have acted with a 1 Rs Dividend then rights issue and then and delayed announcement of right issues dates it appears that way right now. If you look at OSEA and LITE, the right issues would have been failure as OSEA was trading at right price of 15 and LITE at 8. SO essentially the right issue would have been unsuccessfull in our eye. At least in the OSEA case I heard that their mother company bought all( most) remaining OSEA rights on a pre arragement. Am wondering the same for SEYB???

I really HOPE NOT, as a small investor as I already lost considerable money on SEYB due to this right issue. I hope they will protect their smaller time investors like myself and many. I know after talking to some on the forum they loss money on SEYB too right now. After this loss if they want even more money from me ( for rights) hmm...?


Note : To be unbiased, if n ot for this right issue mess to date, I believe SEYB to be a good long term bank with low PBV and decent earning with improving financials. It was attractive before the right issue. The right issue with influx of more capital should make the bank stringer for the future."


http://forum.srilankaequity.com/t2755-brief-analysis-of-the-banking-sector

CSE Today wrote:While all the retail stake holders are worried over the SEYB issue, I see some thing different way - may be correct or wrong but the whole episode smells my thinking is to be little possible

Earlier the CBSL tried to find an investor to take over/Merge the SEYB and failed its attempt due to undisclosed reasons.

Now I guess the "Directors by sticking into Rights issue with its original prices & quantities and they are upto a pre -arrangement of subscribers [could not be one subscriber as the CBSL banking act do not allow any party to acquire more than 10% of a running Commercial bank]..who will together take the control of SEYB & later go for a merger ..which was the willingness of the CBSL

to support the pre-arranged investors the SEYB N share price @ the trading floor is kept low by purposely [follow the pattern of dumping of SEYB shares at lower prices every time SEYB get momentum & start a upward trend]..by this way the present share holders will be discouraged & will not subscribe to the Rights & the said pre -arranged party has the opportunity to get the maximum by the way of additional applications....!

[While SEYB N is kept low X will also be traded much lower]

Best option at the moment is to hold the shares & to subscribe to the full allocation of rights..if my thinking goes correct then after the issue SEYB will move up very fast & the PPL who was holding+subscribed to R will be the winners ...But never buy more & more thinking to average the cost...it's not a good practice I guess...!

good thinking + from me

slstock wrote:
I mentioned this possibility before in another thread. Don;t think it caught anyone eye at that time. Below is what I said on April 16th
...........


http://forum.srilankaequity.com/t2755-brief-analysis-of-the-banking-sector

Thanks for the info
Are you trying to say that I hijacked your idea...? then you are wrong your posting is on 16th April...

Just see my posting on below link & date of posting

http://forum.srilankaequity.com/t2231-banking-sector-analysis-combhnbseybntbsambdfcchdfcndbpapc-and-mbsl?highlight=seyb

Sun March 27th

My suspicion is...That the Dividend is for the present share holders and the rights issue is targeted at prearranged buyer....who may apply for full issue as additional rights application [some thing similar to underwriting] ...! so by the way of rights the Bank will get the targeted 4BN @ the same time showing all the citizens & stake holders that the Bank is in correct path by giving a Dividend...!

Anyway no offense who is to mention it first,...we all are on same boat re SEYB -lets go ahead....cheers...!

CSE Today wrote:

slstock wrote:
I mentioned this possibility before in another thread. Don;t think it caught anyone eye at that time. Below is what I said on April 16th
...........


http://forum.srilankaequity.com/t2755-brief-analysis-of-the-banking-sector

Thanks for the info
Are you trying to say that I hijacked your idea...? then you are wrong your posting is on 16th April...

Just see my posting on below link & date of posting

http://forum.srilankaequity.com/t2231-banking-sector-analysis-combhnbseybntbsambdfcchdfcndbpapc-and-mbsl?highlight=seyb

Sun March 27th

My suspicion is...That the Dividend is for the present share holders and the rights issue is targeted at prearranged buyer....who may apply for full issue as additional rights application [some thing similar to underwriting] ...! so by the way of rights the Bank will get the targeted 4BN @ the same time showing all the citizens & stake holders that the Bank is in correct path by giving a Dividend...!

Anyway no offense who is to mention it first,...we all are on same boat re SEYB -lets go ahead....cheers...!

There is no competition here. We are all victims at the moment of the right issue debacle and have common interests and concerns.

No I did not saying you hijacked anything . All I said is I also mentioned the same possibility on another thread which did not probably catch the eye at that time. I see you mentioned it too.

Anyway let hope all of us small investors who got caught to the badly timed right issue can survive this in the medium term.

I still think SEYB is a good bank for medium to long term. I recently saw broker report recommending it as a buy
( sometime in February) and showed estimaetd value of Rs 120+ for the SEYB.N. This right issue killed a potential and made some of loose money within the last 2 months .

Dear friends
thank you for valuable comments.