Shalimar Paints down by 32% from peak
8 August 2017
Shalimar Paints is a stock that has attracted widespread interest following the news that well-known investor Mr Porinju Veliyath has taken a significant exposure to the company. Back on 14 May, I had written a blog post urging caution, as there was a good chance for the stock to experience some profit taking from Rs 285 onwards. Click HERE to read that post on Shalimar Paints. | |
It is approximately 3 months since that post was written. Shalimar Paints has been to a high of Rs 320, and yesterday it traded at RS 215. That is a decline of almost 33% from the peak, and 25% even from Rs 285. It is important for investors to take a step back and think about what is happening when they read news of big investors taking large bets. You really don’t know whether it is a trading position or an investment for the medium term unless the big investor makes a public comment about it. | |
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