1)Well,the promoter of the company Garg transferred his shares to his wife.
2)Moreover I meet some of the doctors and found out that female condoms aren't going to be so popular,since its very inconvenient.
3) No succession planning, and they don't have a CEO yet.
4) My guess was this company would be bought by big players or QIP,that didn't happen.
5) Being a small cap company of just 300 Cr,I didn't want to take such huge risk. I bought it around Rs 100 and sold it at 295 Rs.
Well, I follow pat Dorsey's book of "five rules of investing".If you have even read that book you'll understand that your statement makes sense. So you could say that he believes that ultimately a good ROE,ROCE is important. Not that understanding the core of business isn't,but its not that important.
How many of the employees of suzlon bought suzlon stocks because it was the next big thing. They knew the core of the business,they knew the working.The market went gaga over suzlon. Now where are those people now. My friend(suzlon employee) lost serious money just because he thought renewable energy was the next big thing
Ok this is really lame statement. The whole process of investing is buy low and sell high. Maybe you're a growth investor and I can understand that you keep running behind high PE growth stocks which will be "the next big thing" for the market. Yeah no,good example I can give is Suzlon.
See,every industry has its cyclic phase. And I am very much assured that IT sector will follow a bubble. 5,10,15 years? Who knows. But even so their EPS growth will surely see a increase in stock price. If not they have a dividend yield of 3%(according to my stock purchase).