Sell: HDFC Bank (HDB)
From Cabot Emerging Markets Investor
Updated from Wall Street’s Best Investments 774, October 21, 2015
HDFC Bank (HDB) reported earnings on October 24, and the market reaction wasn’t positive. The stock dipped from its 95 close the day before to 89 on October 25. HDB rebounded to 93 at today’s open, but fell back closer to 90 as the session wore on. The numbers appeared to meet analysts’ estimates, but there was pressure on margins, which may have discouraged investors. Given that HDB has been trading sideways since the beginning of August, we will sell HDB, which is trading a point or so above where we bought it. That’s not how a growth stock should act. SELL.
Paul Goodwin, Cabot Emerging Markets Investor, www.cabotwealth.com, 978-745-5532, October 26, 2017