This post is in continuation of my forecasting folly series (see here)
In a report dated Feb 08, 2012, ICICI Direct recommended a buy on Opto Circuits with a price target of Rs.309 as against the then prevailing price of Rs.268
The price of Opto Circuits kept on falling and Dalal Street’s finest kept revising their target price downwards in sync with the falling stock price.
For instance, on Nov 20, 2012, ICICI Direct had a buy on Opto Circuits with a price target of Rs.181 as against the then prevailing price of 106.25.The “target” price was roughly 70% more than the prevailing stock price !
Now fast forward to Feb 26, 2013.The stock is now trading around Rs.50 !This is around 16% of the original target price set one year back by the helpful folks at ICICI Direct !
Forecasting folly, anyone?