Forecasting Folly: Crew B.O.S.

This post is in continuation of my forecasting folly series (see here)

On May 4, 2011, Sunidhi Securities came out with a buy call on Crew B.O.S. with a target price of Rs.145.

Then the prevailing price of the stock was around Rs 104 .So the call indicated an upside of around 40%

That buy call turned out to be the kiss of death for the stock.Over the next two years, the stock slid continuously and is now available for Rs. 10.55 !! (There is no indication online of Sunidhi Securities changing its recommendation during this period)

The current market price is actually 7% of the target price set two years back !!

Forecasting folly, anyone?

2 thoughts on “Forecasting Folly: Crew B.O.S.”

  1. This is a fit case for SEBI to de-register Sunidhi Securities , there must have been violation of insider trading rules, indicating nexus between promotors & Sunidhi. Will SEBI penalise ?

  2. This forecasting was to distribute the shares accumulated at a very lower price ..in other words operator creating hype to liquidate it’s holdings .

    Similar trend you can see in the stocks recommended by Ashish Chugh on CNBC 12th March – Vadilal Industries & one more share which saw a huge trading activity (buy & sell) by one concern only to create hype & lure retail investors .

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