07 -ONCE A DARLING, NOW AN EVIL

The seven-part of Series “Once a darling, now an evil”. This series is based on the companies which were once upon a time darling of the market and now, it has wiped out the majority of all those gains. I am trying to put some of the number-crunching facts by which we have identified ongoing issues in the companies and have saved our wealth.

I am starting this part with one of the company is trading in a broad range of steel products which has an all-time high price of ~Rs.307 in 2011 and now last traded price at Rs.0.36.

KIND01

On the first instance this company having huge sales and profit growth. This creates a temptation to buy with missing out of the opportunity.

Also, when we look at the debtor days then….

KIND02

Reducing… good…

But don’t forget to look cash flow statement….

KIND03

The company continuously having a negative CFO.

Don’t just get blinded with growth but focus on cash which is real.

Disclosure – Companies mentioned in the article are just for an example & educational purpose. It is not a buy/sell/ hold recommendation. 

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