Forecasting Folly:Parekh Aluminex

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

On Nov 16,2012, Firstcall Research put out a buy recommendation on Parekh Aluminex with a price target of Rs.357.

What happened next was a truly tragic and a black swan event.

On Jan 6, 2013, the founder and the driving force behind the company Amitabh Parekh passed away (Blogged his obituary here)

The stock started tanking immediately and brought out the fact one-man companies carry an inherent KeyMan risk.

Now, the price of Parekh Aluminex is quoting at a 52 week low of 72.75 Rs.This is around 20% of the original target price set only 5 months back !

Forecasting Folly, anyone?