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In mid 1960's in US, conglomerate boom happened and its growth was mostly driven by synergism, so it was supposed to be 2 plus 2 equal 5. In order for synergism to work there should be merging with uneven swap ratios.

Example:
Company A 5,00,000 shares earning 1 crore 100/share (EPS = 20)
Company B 5,00,000 shares earning 1 crore 50/share (EPS = 20)

If A merges B for swap ratio of 1:2 (which holds ok for market price) and suppose they have similar earnings for another year i.e. without growth in earnings then
Total Share = 5,00,000 + 2,50,000 = 7,50,000 for earning of 2 crore
EPS = 26 (30% increment)

Some companies had at time about 4 merger in a month. But to sum and elaborate previous answer EPS will generally increase.

This is not true that if Nabil acquires other banks, then EPS decreases. Reason is when acquired, not only the capital increases but also business increases eventually net profit increases. In fact EPS will increases in more proportion than the capital due to the lower swap ratio given to other banks.

GBIME र NIB लगायत वैंकहरूकाे Paid up Capital बढी भएकाेले Share Value बढ्न सकेकाे छैन । NABIL ले अन्य वैंक Acquire गर्याे भने NABIL काे पनि Paid up Capital बढी हुनेछ भने १ वर्ष EPS पनि घटेर Below ३० पुग्नेछ त्याे अवस्थामा NABIL काे भाउ घट्ला कि अन्य वैंककाे भाउ बढ्ला ? वैककाे Paid up बढी हुने र धेरै वैंककाे सेयरकाे Trading राेकिदा INSURANCE, MICRO, HYDRO, FINANCE का मूल्य थप बढ्ने देखियाे ।

Yes, NIVB & HBL trading will be halted from Sunday

Bhanepachhi Nib ra HBL ko trading halt hunchha ki hudaina?????

Those who bought worst finance at best price must be happy today.
Huge profit in just a couple of days.
Congratulations guys/gals.

Finally NIB /HBL merger limbo came to an end.

Rumours flying in that tomorrow there will a merger between HBL and NIBL.. may this kick start banking sectors towards North.

worst finance is trading at best price

what is good with CIT? Book close date is nearing should I buy? anybody?suggest me... the supply is quite limited comparatively

Its worth reading comments posted in this thread from April 13th till date . Nobody expected current situation at that time. Those who followed my prediction would have accumulated toones of wealth. Congratulations to those lucky guys.
Others friends can still take benefit by reading and implementing those suggestions.

Good luk

Laxmi Bank... anyone?

@Rising sun
"It would be foolish to sell good shares"

One day, when you or your family members get admitted for critical care in one of the private hospital and need to spend 50k to 100k each day per head, then you will realize how important is the CASH. I wish non of the nepalese citizen need to face such disastrous situation. But its mother nature and she take her own course.

Banki M Mafia ko leela.......

During pandemic wave, anybody could get the virus. But still, in kathmandu, if you or your family is not from risk category, you have 2/3% chance of getting corona.

And since, there has been lockdown for week now, that risk may have gone down to .01%.


Since, it has been a week since lockdown, those seeking ICU will fall significantly very soon.

It would be foolish to sell good shares.




STAY SAFE, HOLD TIGHT, ADD MORE, PRAY.

If you wanna survive "CASH IS KING" at the moment.
Its almost impossible to get HDU and ICU beds in Gov/Public Hospital.
Next alternative is PRIVATE HOSPITAL. Can you imagine the cost you have to bear if anybody from your family need critical care in private hospital ? It is well above 7 figures and sometimes even 8 figures if critical patient are more than one from same family.

I also smell same@ seeking divergence. Put some money on it yesterday to gain some bucks quickly. But yesterday loose some money. Hope to gain from today. Baki bhagwan ko leela. Hope for the best.

Reply

Forgive me if I am not a finance expert, but did United Modi Hydropower just give away that they're going to issue "some" right shares? News says that they are going to invest Rs 67.5 crore in Mewa Khola. As per their Q2 report, they have 5 lakhs in cash and max. Rs 14 crore in cash equivalents. So where is the extra money required coming from?

If I'm not wrong, I smell at least 80-100% right share issue on the horizon. Anyone care to shed some light on this?

Price below Rs 200 and hydro boom upcoming, UMHL seems to be in a prime position to be picked.

Aba right share ko announcement chitai aune jasto dekhincha yo week ko karobar herera.

Market is boring these days, no thrill..

Yesterday Doge Coin Hit 0.50 $ Mark, and Currently trading above 0.65 $ Mark.

Now it has become the Fourth Biggest Crypto Currency in terms of Market Cap.

Now it is very Close take the Number 3 Slot in Crypto Ranking once its surpass 0.80$ Mark.

Likely to Hit 1.00$ Mark Before SNL (Saturday Night Live)

Will Watch Elon Musk & Miley Cyrus ( ) , Miley one of my Favourate Singer !!

The Rally from 0.004 $$ Mark in 01 Jan 2021 has made many People Millionare

1,000$ Investment in 01 Jan 2021 has turned into 1,62,500 $$

6,200$ Investment in Doge in 01 Jan 2021 has rurned many People Millionare in $$ Term.

This is a story of Kunai Desh ko Kura

Ram Ram







It looks like Indian virus has reached peak especially in high hit area. Could we expect Nepal's indianvirus reaching peak in 7/10 day?

looks like this time also they are going to increase crappy share...

Alll banking holders are like " grapes are sour "". I am value investors. ***

Somebody ji, If I sell NIB tomorrow, I shall loose 50k. May be in two day, if merger is true, I may gain 100k.

Rising sun, sell all your NIB and switch back to MNBBL

You dont want your money to be freezed for months in this bull time, do you?

You are not hyper jealous of me, Dubosi ji, are you????


Individual becomes rich when their monitory value of assets, they are holding, increase by many time. You wont become rich if you are holding average asset or cash.


I am holding huge quantity (in Nepali standard, not big player's standard) of MNBBL.

MNBBL's profit has a chance of reaching three times in two year. Can we say same about, newly about to be merged NIB, HBL? I see max 200% (its if they solve NPL issue, not cause of growth).

Current(3rd qt) Profit of MNBBl is 1 billion and price 430, PE-15.

Current profit if NIB- 2.84b and HBL- 1.28b. Price- 447 & 492 respectively. PE- 19 & 30 respectively.

(MNBBL is far better in growth and still PE ratio is far less, in civilized world, the company with huge growth prospect has much higher PE ratio)



MNBBL's growth is huge compared to HBL or NIB, MNBBL's PE ratio is almost half. This is suppose to be grand opportunity for HBL, NIB share holder to swap their shares into MNBBL but they dont, why ? Faith is giving them chance but .......... HBL and NIB ruled in the past cause they are rana and panday who licked shah's boot, there has been change is satta, its' ime, bishal's turn to rape Nepal.








My NIB investment is suppose to be for short term. It already entering into mid term.

I wanted to make some quick buck from NIB and put that money into MNBBL. During this time, MNBBL increased 10/15Rs while NIB decreased 20.










Banki Mafia ko leela.......

@Rising sun
Add at least equal volume of NIB below 450.
In short term you wont gain much. Since you always look for something big in long run (this is what i ve understood analyzing your past comments), merged entity will definitely pay you back, even better than your favourite script. Hold it for 2 years or more and compare the return.
You can invest 50% in your favourite script and 50% in NIB now.
All the best.
Banki Mafia ko leela.......