By Baniya Beast,
You’re smart, smart enough to apply smartness, created smart rewards but it takes more smartness to sustain the smart rewards – Anonymous
This time last year Page Industries (Jockey or nothing!) hit a high of 36,370 per share. You would be exhilarated as an investor if you had invested in the innerwear leader around January 2009 when it was quoting at meagre 310 per share.
You had all the right to boast about your genius investment idea and the 117x return you made in 10 years. You’re comfortable holding it and believe that this investment will become better if kept in snooze mode. Perhaps it’ll become 150x in next 3 years with the gigantic growth the company has managed to deliver.
Today after company’s Q1 FY20 results the stock reacted a bit. But its reacting for the past 9 months on the way down.
Since you self-broadcasted the 117x Page story, the same people turn to you and genuinely look forward to your genius view. Now the only difference is that you’re down to 56x story with current price of 17,630 per share.
Page hasn’t seen more than 30% fall in these past 10 years. The current downward move might be more sustainable and time correction is surely on cards if not valuations shaving off.
Your returns are shaved and vanished. You would be unable to digest the fact that 117x story is down to 56x in 10 months!
So go ahead and tell about the 30-40-50x story (if you have any) but be prepared for the returns to shave off in a jiffy.
This post was originally published by author Baniya Beast.