I was and still am extremely bullish on fibre optics and connectivity solutions. Presently I am (wait for it) 45% (~10L) down on this stock after having been positive for a few months last year. Didn’t exit at the point of Q3 write-off’s thinking it will eventually get compensated by the market share grab in US/UK and subsequent quarters of profitability. Promoter track record is the only (and probably the worst) concerning aspect. They seem to be getting into more value added products and I’m really intrigued by the tons of patents that are getting granted (hope those are verified claims) and how it will help sales / margins.
Some of the other purchases alongside like RajRatan, Avantel, Page etc are growing like crazy and there have been disasters like Muthoot Finance & IndiaMart.
So the question is how do you handle such a scenario from a portfolio (~25 stocks) point of view. I’m just at around 1.5% in red maybe. When such a stock gives mixed signals, do you cut the losses and redistribute whatever is left or considering the pain has already been inflicted, stay put and hope the recovery wouldn’t be too slow.
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