I agree with you, the same question I would also have. The same question was moving around few months before yes bank crisis. Looks like market knew what’s brewing. At some point Yes should be a good buy, but you never know in financial companies how deep issue is. I will wait and watch with no regrets if I should miss an opportunity.
I was trying to understand why some stocks fall just before the news comes in the public domain and came across this study which was published on Elsevier. Could sense a lot of similarity with what’s going on with Yes bank.
“Using a large sample of U.S. public firms, we find robust evidence that short interest is positively related to one-year ahead stock price crash risk. The evidence is consistent with the view that short sellers are able to detect bad news hoarding by managers. Additional findings show that the positive relation between short interest and future crash risk is more salient for firms with weak governance mechanisms, excessive risk-taking behavior, and high information asymmetry between managers and shareholders. Empirical support is provided showing that the relation between short interest and crash risk is driven by bad news hoarding.”