see below the latest price action (ouch !!!). well this is not the first time :)
update 25/07 - i checked up on the news and any other new developments. Could not find any fundamental reason on this spike. I am still sticking to my earlier thesis that i should not get into such stocks in the first place.
Key reasons being
- poor management and poor capital allocation
- management is not shareholder friendly and is not transparent at all
- no visible trigger for the value to get unlocked.
I would however keep tracking new developments and see if i missed something obvious.On the other hand, L&T was a clear miss from my end. I failed to do a sum of parts (the cement business which was destroying capital and the EPC business which was doing well) and also did not realise that once the cement business got divested, the value would get unlocked. As buffett says, i was looking in the rear view mirror and not through the windshield.