You feel that PC Jeweller stock price has gone down much compared to its previous levels and feel its available at an attractive price to buy now.
But many traders felt the same, when came down to 600 from Rs.199 in few months. People thought this was a very attractive buy.
But remember, what a stock corrects so much from its peak levels, we cannot assume/claim that fundamentals are valid, book value is higher, available at intrinsic value, these claims are not valid at all when price falls drastically. Stock price always moves based on anticipation of whats going to happen to the company in the future. If its gone down, then there must be a valid reason for it. But by the time, you come to know about the reason, the stock would have fallen much more.
And that’s what happened with PC Jewelers. Same folks who thought PC Jeweller is a good buy at 190 levels, bought it. But look what has happened.
From 180 levels, it has came to Rs.80 levels and again the same set of people did the same mistake again. Traders/investors who thought Rs.80 is attractive buy, as the stock has gone done much and from here it should bounce back.
So the same type of question was posted again. But PC Jeweller stock price has gone down even further from Rs.90 levels to Rs.40 levels now.
Now you would know from Rs.42 where the stock is heading, and don’t be surprised if some again post the question after few months “Is it right time to buy PC Jeweller at Rs.20”? So just stay away from it and save some money.
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