Tiger indeed has been ferocious ever since publishing Jun’21 quarterly results, choosing to move in consecutive circuits from 55 until peaking at around 280 in Jan’22. In terms of performance, nothing much has changed in 2022 however the stock strangely started bouncing up from 220 to 340 in just 2 week’s this Nov.
I have been riding on this tiger since mid 2017 attracted by a sharp correction from 292 to low 200s. My bet was on the overall logistics industry back then with huge potential for growth. From my entry price at low 200s with 4000 shares, I was accumulating heavily through its fall at 30-70 levels and brought down my average to ~ 65 with 10x initial quantity.
Have offloaded nearly 3/4th of my holding at an average of 250 and never been tempted after accumulating until Aug’21
Although I still continue to bet heavily in the logistics space, Tiger’s ride will most likely be bumpy and I doubt there will be any strength left in the current rally. I see the price consolidating at 250 to 350 levels for next 12 months before making its next directional move.
Last time the fall was more to do with its heavy debt and high receivables, both of which have been taken care pretty well in the last 18 months. As long as the strength in this aspect continues, the tailwinds in the industry and company’s aggressive growth plans will continue to drive its price well in the long run.
| Subscribe To Our Free Newsletter |
