There is nothing like sure shot investment in stock market. Though we look for certainty, Warren Buffet said that certainty comes in market at a very high price. As we are discussing, and many of us are invested in such micro cap company, on the very definition of micro-cap investing, we are playing with uncertainty. It all boils down to “thinking in bets”. Let us have a look;
- March half year result was poor, and it resulted in some correction in stock price. I bet that future results shall be better.
- In last one year, the company has acquired numerous certifications, increased production capacity, started marketing aggressively, developed foreign connections… The effort is likely to be rewarded.
- On project side, the company has been able to grab a few prestigious orders.
- On market cycle front, capital goods industry is likely to do well in this phase of the market. Investment environment gives a tailwind to the sector.
- The company is serious about its foray into defence sector.
If these things happen, investors in the company may be rewarded handsomely.
If these things does not happen, i.e. investment environment worsens, market crashes, the company financials deteriorates- of course some losses will be there.
We all put our probabilities on both the scenarios and move further. Future will always be uncertain.
(Invested and Biased)
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