Update 3 - Commercial Bank Plc - Buy when others fear, and when blood is on the street.

Update 3 - We have completed 3 weeks since the entry to Combank position based on the strategy named STOCK ACCUMULATION.  Current holding is 40,000 shares at an average of 98.06. I noticed that the price of the stock took support above 95.90 and tried to test 98, and failed. But trying to settle around 97. As the overall market the ASI moved above 6100, the price action on COMB will not hold behind in the opposite direction. MSCI Sri Lanka Index which is frequently watched by some of the big wigs comprises of only 2 stocks (constituents) i.e. COMB and JKH.  If you are interested in that try to read the pdf update of it dated 27th of Nov 2019, you can look at it here... It says that 85% of the whole market of Sri Lanka comprises of these 2 stocks. As such those who are guided by this index and are interested in entering the Sri Lankan Market will certainly own COMB. If you are interested, take a look at the MSCI chart given here and understand the present price action of it vis a vis constituents and the ASI.

MSCI SRI LANKA vs ASI,JKH and COMB

Some of those who read my previous updates were of the opinion that this counter will see selling at lower levels (Also a Rights Issue). They may be the best informed people about it but I am not. I believe in the capacity of this stock to reach my target given in this INVESTMENT STRATEGY. So I am going to stick with it. Those who are waiting until it comes down, may wait and buy then. There is a section among this lot that will wait until it rises above 110. They say that level will confirm an uptrend for the counter. As long as those are there strategies we need to respect them. But if they are just saying without any strategy then they are in trouble (So Sad).

Another important event for the counter will be the dividend payment that is usually around late Jan to early February. That will be an added benefit for this strategy but that is not the only reason that has made me track the progress of this strategy. Ironically the ASI collapsed just after COMB gave the dividend during 2019. The dismal events that we witnessed during that period may be history, but that period in 2020 will be very important for the ASI and the counter. Lets see....

My earlier report can be accessed Here