Don't sell high PE stocks in a hurry; look at cash flows first: Basant Maheshwar

Discussion in 'Must-Read Interviews, Articles & News Items' started by Vidhi Khanna, Apr 12, 2015.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

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    I will tell you the long trends of a stock. If it is a free cash flow company, then the stock price would not collapse in the long term. If the cash flow is negative, then the stock price collapses and comes down to meet earnings. But if the cash flow is positive, the market gives it one two-three chances. So, the trick with these high PE companies is as long as their cash flow remains positive, one should not be in a hurry to sell them. But if their cash flow turns negative, and they are diluti ..

    https://economictimes.indiatimes.com/opinion/interviews/dont-sell-high-pe-stocks-in-a-hurry-look-at-cash-flows-first-basant-maheshwari/articleshow/46888505.cms
     
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