You see, I don’t claim to know anything particularly special about the company, nor do I consider it a hidden gem. What I’m pointing out is this:
Imagine making a 50x return just by holding a stock for three years (from 4 to 200). It’s an incredible return in a short period. Then, the stock starts to consolidate (200-160), and you think, ‘Okay, it’s taking a breather, consolidating, getting ready for the next leg up.’ But then, it starts trending downward (below 160-150), and some investors decide to book profits while others hold on. Suddenly, in a short span, the stock drops another 10-20% (down to 125 or lower), and you find yourself losing a significant portion of that 50x gain.
At this point, many investors don’t care about valuations or fundamentals anymore—they just want to protect the remaining 30x they’ve made and cash out
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