from 708, stock is dwn 40% n is below 400 rs now. which zone will v find value in this countr?
this was yesterday, today down by 15-16% more
What do you mean value? Are you looking for a trading opportunity or do you want to invest for long term?
2 Likes
medium trm investment.
trading move obviously expected as extrmely ovrsold
For investment, long or medium term, you have to know the reasons for such a fall. 30% fall in 2 days, so there have to be very good reasons, volume is increasing too, so people are selling.
So it is better to wait for the price to stabilize. Of course sometimes the reasons which are thought to be serious, which are thought to change the business may not seem the same after a few days, then price will go up again. In such cases, a fall like this is an opportunity to buy, but we have to be very sure that the reasons for the fall are not valid, and the price will go up. Else, it is better to go with the market, wait for the price to settle, start moving again, and then buy, or take a small position, wait for the price to move up again, and buy more.
It’s a loss making company. I won’t buy it at any level until or unless it turns profitable
Investing is all about future, both for profit or loss making companies. Of course, some people want to invest in companies which are in profit and expect the profit to continue.
Putting money in IPO doesn’t make sense . IPO is like a new born baby. Take some time to understand it’s behavior. Let it make some footprints on charts then you will come to an end.
Not exactly. Its footsteps already exist, but as a private limited company. Everything about the company since its inception, the founders, their vision etc all are provided. Not every IPO has failed, there have been multibaggers too, although each company is different.
I’m not a fan of Growth investing. It’s based on hopes and hypes. I like value investing. It’s based on actual value of a company at a given point of time
There are two different schools of thought here. One is that value is different and growth is different, another is that they both are joined and cannot be separated.
Money is made in different ways in the market, it is only but natural to go with that suits us both psychology and financially.
The risk associated with loss making companies is relatively more. They may or may not turn profitable. High risk high return.
If you want a manager for your business will you hire a fresher or an experienced one? You will definitely get a fresher for much lower pay and he may prove to be very valuable in future. But there is every chance that he will fail.
Personally I will put my money only in the companies which have proved well in past and have a good foreseeable future.
This is the whole point, the very essence of personal finance, we choose what suits us. Some chase after multibaggers, while some focus on CAGR, some are content with MF, some settle with FDs, to each his own.
Yes obviously. I never mentioned that one shouldn’t invest in such companies. I just said they are riskier. It all depends on the risk appetite of the investor.
2 Likes
No pain no gain. No taking chance, no multibaggers. Risk does not mean high return, but high return only comes with risk.
Delhivery is loss making company since inception and it seems they made listing to Dump their shares on common public.
Dumping stocks are different, we should not call every IPO failure as dump, even this is not failure, something has happened and the stock has reached below IPO price, this stock has background.
As it happens many times with IPOs, when valuations are very high, without earnings and are based on future growth prospects, retail froth exits, price falls when the growth will be low. Growth will be low it seems, so price fell.
A trader will follow what , A good story or Price Action ?
Traders follow price. I was talking about investors, investors follow business.
Price Action is a road map to put money in any stock, whether it is for investing or trading.
We just need to understand IPO is a way to collect funds, Companies try to maximize the collection by creating a wealthy environment of investing in their IPO.
Those who have invested in Delhivery IPO , lost more than 20% of the invested capital till now.
LIC , NYKAA , ZOMATO and PAYTM are big names but registered as fail IPO’s and these names are enough to understand why not to invest in IPO.
IPO is not less than a gambling.
Not every IPO has made losses. Also, when you extend the time frame, these can also be seen as small blips, it depends. There have been instances in the past, where after listing, prices of some stocks never came down, went up, up and up and became multibaggers.
Looking at investing from the perspective of a trader is not correct, as they are different. What seems like garbage to a trader may look like gold to an investor.
Also, there is technofunda investing, the best form of investing there is, as the investor understands the business but also looks at technicals, so that he does not lose opportunity cost.