Hi James,
As a rule I never invest in a company that suddenly seems to have hit a purple pitch and keep talking up their prospects on concalls, assuring investors that coming days will be better. Just like we don’t buy things based on their packaging, same applies to the stock investment. Rosy guidance are like clever packaging designed to please investors, telling them what they want to hear.
I made a mistake of being fooled by such guidances in the past and will never repeat it, even if it means forgoing a few extra percent of my returns.
I have nothing against guidances and if they come from credible promoters/management they can provide a lot of useful insights into a company’s business environment, competitive landscape and company’s own position. What I am against is propaganda masked as guidance.
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