I’m little confused about the merger happening between Nabil and nbb. How the price will be affected. Nbb is traded in around 400 whereas nabil is at around 1100. Will it be beneficial to keep nabil stock or buy nbb stocks?

More at: r/NepalStock by Helpful-Finding-2237

  1. Besides current prices of the stocks, one needs to have a good idea about what’s the swap ratio is going to be.

    Big players will spread all kinds of rumors to play with prices of the stocks. For example, swap ratio of Nabil and NBB is said to be between 25% to 55%. With 55%, people will be eager to buy more of NBB and with 25%, people will dump NBB. [meaning 100 Nbb shares will get from 25 shares to up to 55 shares of Nabil]

    Big players make small players dance to their tune. Every fucking time!

    On top of that, it seems like it’s going to be an acquisition. Nbb will cease to be in that case and its trading will be freezed during the process but not that of Nabil.

    We the small investors don’t just know enough about this kind of merger/acquisition until it becomes official. Hence, better to stay away from them!

    My two cents

  2. At current situation both nabil and nbb are overpriced.eps of nabil is 24 right now which is less than sbl,nica (both are at 29).And they are trading at half the price.

    Nabil can’t give 33% bonus from next year.It will be around 20%.

    IF you are ok with your money frozen for 7-8 months then you can pick nbb if it reaches below 330. You will get a 15 to 20% gain(and no cgt for 2 years).

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