obiero wrote:Impunity wrote:hisah wrote:Quite stunning! This thread is almost 6 years old with almost 4 thousand posts discussing one stock! In the same time frame the stock has staged a massive decline with the said firm registering record corporate loss and wiping out its equity.
The investor's psychology is indeed rocket science!!!
You should know some companies are not the same as others.
The interest shown in the stock by general public is indicative of possibility of an upturn.. Its not good to buy fully priced stocks, thoughtful investors pick the bottom. Some may assume that I am not aware of the losses that KQ posted or the problems it faces in turning the tide, but that is a fallacy.. I have my eyes wide open
This is a case study of how not to invest in stocks with the subject being @Obiero:
1. Ignoring fundamentals - A wazuan called out the declining margins, high debt levels, crushing overheads but some ignored.
2. Falling in love with a stock - flying is sexy, alluring, captivating but the industry has lost money for shareholders since time immemorial. Better invest in less sexy industries like banks, insurance, alcohol and tobacco for consistent returns.
3. Bad management - top management earning millions with no skin in the game, political interference, kickbacks, looting... need I say more?
4. Confusing low price with value - for a KQ, a company with -be equity, 5/- per share is not cheap. It's very expensive. Rocket science psychology prevents the subject from seeing this.
5. Penny stock fallacy - the belief that KQ cannot possibly go any lower, will jump back to 100/- and the investor will make a fortune.
Life is short. Live passionately.