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Author: srikant15 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 3812  
Subject: Ispat Date: 1/29/2001 1:49 PM
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I rate this as my dumbest investment even though it has been slightly profitable for a couple of reasons. Firstly, I bought it looking at financial statements but outdated analyst estimates. It looked extremely undervalued (0.4 * book value) for a company that had never reported even a quarterly loss before and whose earning estimates were positive. Later, I found that the earnings estimates had been revised sharply downwards to a large negative figure (before I bought it) and that the company had acquired another at a very bad time and price. If that was not bad enough, I never saw the extraordinary illiquidity of the stock even though it was traded on the NYSE. My attempt to sell 1000 shares at the bid price of 3 7/16 got only a partial fill and started a very rapid decrease in price!! I am still holding what is left after the partial fill since I think the company might still recover and because its management has a good reputation but it was definitely not the amazing bargain I had first thought. This has taught me a lot about the importance of DD beyond just looking at the latest account statements.
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