This post is in continuation of my forecasting folly series (see here)
Marg Ltd is a well known Chennai based infrastructure development company.
In its April 5, 2011 research report, Networth Stock broking recommended a buy on Marg with a price target of Rs.256.The then prevailing price was Rs.126 per share, indicating a potential upside of 103%
As we have seen in other instances, this buy call turned out to be a kiss of death for the stock and the stock started falling thereon.
This was the cue for Dalal Street’s finest at Edelweiss to jump in.In its report dated Sept 21, 2011,Edelweiss maintained a buy target on Marg with a price target of Rs.272. The then prevailing price was around Rs.92 per share, indicating a potential upside of around 300%
The stock price’s negative spiral did not stop and it fell continuously over the coming months.Yesterday, Marg closed at Rs.24.8.
This price is 9.6% of the original target set by Networth and 9.1% of the original target set by Edelweiss.
Forecasting folly, anyone?