As per Investopedia - Bubble is defined as
Bubble, in an economic context, generally refers to a situation where the price for somethingâan individual stock, a financial asset, or even an entire sector, market, or asset classâexceeds its fundamental value by a large margin.
The five steps in the lifecycle of a bubble are displacement, boom, euphoria, profit-taking, and panic.
In my personal view, Paytm IPO fits into this category perfectly.
Disclaimer: These are my personal views only
ok. Which step do you think paytm is in ?
It just got listed, can it be considered as panic ? I donât think so, with just one day fall. If not this, in which stage is it in ?
(this is just my personal opinion)
In my view. it is panic and the bubble that was created from the day the IPO was announced as the biggest IPO etc, but turned out to be biggest disappointment and the bubble was burst. The crash of 27% was after restrictions that anchor investors cannot sell their shares on listing date. Not sure what will happen when this restriction is removed
Not sure what will happen in future, whether It will recover or not, but never heard of any company who makes loses and still valued at these levels. I hope there will turnaround and all investors will be rewarded for investing in this company. This is all I have to say on this topic.
Disclaimer: Not invested in this company and have no interest either.
Hope Paytm will follow Reliance Power Anil Ambani, who compensated investors to some extent by issuing free bonus shares to shareholders, excluding the promoter group when Reliance Power was listed with lofty valuations.
Pay tum karo effect