A Short Story. Key Points. Wealth Destroyer – Stocks
We have heard you say that you can become a billionaire if you buy some shares in a XYZ Company in the Stock Market. Some say that if you invested Rs. 1 Lakh in this particular stock 20 years ago, now it would be worth Few Crore rupees today.
It is only by investing in the stock market that businesses and shareholders can make good returns in the long run. At the same time, one may loose their entire wealth through stocks. There are many stocks like that caused such investment losses.
Here’s a look at their stories. The Beauty of Short Stories are phenomenal. When it comes to Short stories on the learning about Stocks, it’s character can make an investor for a Deep reading.
We are going to narrate about a particular stock which provided more than 60 Percent from the March 2020 lows. It is currently trading in the Indian Equity Market, So no issue. At the end of this story, you will know the name of the Stock.
- The Company was founded in the year 2002. The Founder of this company is said to be one of the Richest Business man in India and Globally. He is also best known to raising the funds recently.
- Initially, the said above company had used the Advanced Technology – CDMA in it’s business. It has a tremendous numbers on Customers and dominating in that period.
- After a few years, the Company changed it’s ownership to another. The New Chairman is also a close relative of the Founder. New Chairman was called to be one of the Best Business Man and Entrepreneur in India and received so many Business Awards.
- Then he entered his business to the GSM Service and the 3G Technology was introduced in the year 2011, by the company. The Company had also bought the Spectrum worth Rs. 58,643 Crore. They acquired two companies in its segment – MTS Cable and Digicable.
- For some reason, the company service was failed and couldn’t earn much in the 4G Technology. The Industry was also suffering that time and the Company is in High Debt. The Company had tried to merge with the Aircel – another Telecom Service. But, it was too failed.
- The Company had an investment dispute with the Swedish Company, Ericsson. Ericsson sued this company to the Court. The World’s Sixth Richest Person has now declared for Bankruptcy due to Heavy Debt.
- USD 42 Billion Net worth now comes to nothing. 12 Years before, the Stock was traded at Rs. 800 per share and in March 2020, it was trading at 0.80 Paise per share. Note that there is no bonus or Stock Split were happened in this Company.
Can you guess which company it is ?
Instead of looking the Prices of the Stock daily, one should look at the nature of the Company’s Debt and Debt to Equity, How the management and Corporate Governance is and How the revenue is growing in the years.
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