Comments on: Mark To Market and Mark to Model algorithms are flawed http://enewss.wordpress.com/2008/03/31/mark-to-market-and-mark-to-model-algorithms-are-flawed/ Indian blogs Mon, 28 Dec 2009 00:07:30 +0000 http://wordpress.com/ hourly 1 By: India Inc’s excessive exposure to derivatives a media hype - says Kalpana Morparia « Indian bloggers mania: sridhar kondoji http://enewss.wordpress.com/2008/03/31/mark-to-market-and-mark-to-model-algorithms-are-flawed/#comment-1397 India Inc’s excessive exposure to derivatives a media hype - says Kalpana Morparia « Indian bloggers mania: sridhar kondoji Mon, 29 Sep 2008 18:02:01 +0000 http://enewss.wordpress.com/?p=28#comment-1397 [...] related blog: http://enewss.wordpress.com/2008/03/31/mark-to-market-and-mark-to-model-algorithms-are-flawed/ Possibly related posts: (automatically generated)Mark To Market and Mark to Model algorithms are [...] [...] related blog: http://enewss.wordpress.com/2008/03/31/mark-to-market-and-mark-to-model-algorithms-are-flawed/ Possibly related posts: (automatically generated)Mark To Market and Mark to Model algorithms are [...]

]]> By: Sridhar Kondoji http://enewss.wordpress.com/2008/03/31/mark-to-market-and-mark-to-model-algorithms-are-flawed/#comment-1396 Sridhar Kondoji Mon, 29 Sep 2008 14:30:02 +0000 http://enewss.wordpress.com/?p=28#comment-1396 Atlast ICICI bank scrip is below RS 500. I thought this event would happen lot sooner, but it took 6 months for my prediction to come true. I am now predicting that ICICI scrip could go lot lower than this and there are many more reasons now. 1) Lehman brothers and WaMu bankruptcy has pushed down the derivative prices lot lower than what other investment banks are pricing it on their balance sheets. These banks are reporting losses with 70-80 cents on a dollar. However, the price has gone down now to 15 cents on a dollar. With this pricing, ICICI bank could report much wider losses in the next quarter, unless US taxpayers bail them out with $700 Billion package. As per the details, the tax payer money is being used to buy these toxic investments at a price above 50 cents on a dollar. 2) ICICI bank is still hiding its over all exposure to this unregulated market. This is what scares me as an investor. 3) ICICI bank's growth prospects are dim given the Global economic slow down and Indian real estate market slow down as well as credit defaults of many bank customers. I am predicting that ICICI bank's scrip could go down to RS 200- 250. Atlast ICICI bank scrip is below RS 500. I thought this event would happen lot sooner, but it took 6 months for my prediction to come true.

I am now predicting that ICICI scrip could go lot lower than this and there are many more reasons now.
1) Lehman brothers and WaMu bankruptcy has pushed down the derivative prices lot lower than what other investment banks are pricing it on their balance sheets. These banks are reporting losses with 70-80 cents on a dollar. However, the price has gone down now to 15 cents on a dollar. With this pricing, ICICI bank could report much wider losses in the next quarter, unless US taxpayers bail them out with $700 Billion package. As per the details, the tax payer money is being used to buy these toxic investments at a price above 50 cents on a dollar.
2) ICICI bank is still hiding its over all exposure to this unregulated market. This is what scares me as an investor.
3) ICICI bank’s growth prospects are dim given the Global economic slow down and Indian real estate market slow down as well as credit defaults of many bank customers.

I am predicting that ICICI bank’s scrip could go down to RS 200- 250.

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