Since my last update on the 10th of January '20, Strategy I am following on Commercial Bank Plc is still open. Its customary dividend payment was announced on the 31st of Jan, and went XD on the 12th instant. At which point we held a volume of 115,000 shares. Dividend was Rs.3/=. One good thing that happened to this dividend is that it was free from Withholding Tax, as such received a payment of Rs. 345,000/=. With this the Dividend Adjusted Average Cost is now at Rs.91.41, with 150,000 shares in hand and the Investment is Rs.13,711,691.20. On the 20th of this month they announced the final dividend of Rs.2/= by way of shares, and the XD date is yet to be announced. I have done an amendment to the Buy Rule due to the Dividend Adjustment and the Stock accumulation will take place at or below 91.80 which was the Dividend Adjusted Average Price on the XD date.
As far as as Fundamentals of the Bank are concerned, the prices that it is trading at are real bargains, but only those brave hearts would want to accumulate even at lesser intervals than what is covered in this Strategy.
My intention of covering this counter based on this strategy was all to prove that it is NOT EASY to make money in the Stock Market but NOT HARD, provided you follow a strategy with Confidence. If we doubt and not certain that this stock will give us the desired returns, then you can not continue with a strategy at all. As far as I am concerned the credentials of this Bank is stupendous for the Prices that its trading at, right now. Therefore I will keep up to this strategy till I achieve the desired returns.
