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Thursday, May 26, 2011

Should Managements go into doldrums when stock-price trumble?

Stock-prices may tumble for numerous reasons apart from the performance of a Company.


*A Company's share-prices may plummet owing to reckless speculation by global players.

*A Company may perform well. But the industry, of which the Company is a part, may not perform equally well. The share-prices for the industry may collapse. It is not a reflection on the functioning of a Company. I do not say that Management of the prosperous Company should be totally complacent, sitting on its own laurels.

It may sometimes, be late for the industry-wide sickness to become incipient in the prosperous Company. The Company Managers may have to be alert. But they need not panic.

*A Company may have already started on a trajectory of healthy growth which others in the arena might not have done. The first Company in this case need not change its already healthy course, simply because
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