Big Bull Exits Mid-Day Multimedia Lesson to investor

Report: Investor Rakesh Jhunjhunwala has sold his entire stake in Mid-Day Multimedia, the publisher of tabloid Mid Day. Jhunjhunwala sold his 2.25 million shares, amounting to 4.26% in the company, along with his wife Rekha Jhunjhunwala's 250,000 shares (0.47%), for a total sum of Rs 79.97 million. The market transaction took place at an average price of Rs 31.99 per share. Jhunjhunwala had bought the stake in Mid Day in the third quarter of FY 2004-05. Shares of Mid-Day Multimedia have seen some upward surge after Jagran Prakashan initiated talks to acquire stake in the company http://www.indiantelevision.com/headlines/y2k10/apr/apr67.php

Points to note: Average price of Investment made by Mr.Rakesh can be above the price he has sold the sake now. So after 5-6years of investment Big Bull has not made money and out of his 10picks he would have been wrong on this one pick. But most of the investor would have heavily invested only in this single stock as this stock is low price.

Mistake investor Do: Many investors brought Mid-Day thinking this stock would give 5-6times returns and perform like TITAN but their average cost would be above Rs.60-70 and today it is quoting below Rs.35 and now investor would be confused as they never did any homework on the company before they brought and now whether to hold or sell as their Big Bull has exited they would feel standard.

Advise: It is never important to be on the bull side or bear side, but it is important to be on the right side whichever way you follow and whomever you follow. Big investors have access to more information and to management when Mr.Warren Buffet invested in Goldman Sachs he got the best deal in a panic situation which a small investor would never get. So follow the leader in way they select stock and improvise their method to invest in stock which would suit you, Tips or inside information can never make any investor rich. Maybe in short term you would make money by way of Tips and Inside information but in long term the money you made never stays as most of the investors have failed to understand business themselves and have used herd mentality to follow someone.

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