Sampath Sluggishness

worthiness · 1 Sampath Sluggishness Mon Apr 22, 2013 8:06 pm

worthiness

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I read few forum articles of SAMP.N0000 that indicated one of the possible hitting factor for the downtrend of the counter caused by ESOP. I still believe that the methodology of ESOP would not cause for such a drop as the methodology itself protect the standing of the share. It is common in the market the very sluggish demand for any counter after the payment of dividends. Experts in banking sector can disclose the any special event concerned as I am on the fence to keep or dispose my portfolio.

Gaja · 2 Re: Sampath Sluggishness Mon Apr 22, 2013 8:41 pm

Gaja

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Am not certain, but this also might have some impact to the Sampath - http://www.dailymirror.lk/business/other/27668-banks-cut-gold-exposure-on-possible-price-crash-.html

salt · 3 Re: Sampath Sluggishness Mon Apr 22, 2013 9:01 pm

salt

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ESOP has nothing to do with price movement. If ESOP is bad, then it should be bad for allJKH,HNB,COMB,.....
This is another billa created by some interested parties...

hariesha · 4 Re: Sampath Sluggishness Mon Apr 22, 2013 10:05 pm

hariesha

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worthiness wrote:I read few forum articles of SAMP.N0000 that indicated one of the possible hitting factor for the downtrend of the counter caused by ESOP. I still believe that the methodology of ESOP would not cause for such a drop as the methodology itself protect the standing of the share. It is common in the market the very sluggish demand for any counter after the payment of dividends. Experts in banking sector can disclose the any special event concerned as I am on the fence to keep or dispose my portfolio.

I don't think it's due to ESOP. SAMP only issued about 100,000 shares in March under ESOP, which is negligible.

But GOLD problem seem to be the reason. SAMP is having the 2nd highest exposure to GOLD and is only second to Peoples Bank. Percentage wise 25% of total loans are under pawning. There is no much default risk of the loans as collateral is mostly jewelry with much more emotional value. But definitely there will be a considerable provision in June quarter, unless Gold makes a considerable recovery.

But I think SAMP will recover if there's continuous momentum in the market or with March 31st results.
If it falls below 210/-, may be ok to enter again.