There can be pages written on how accounting was made up in Opto Circuits. But given my lack of expertise in the matter to write in detail , will leave the job to all the analysts who were covering the stock for many years.
This was my first tweet way back in August 2012. And tweeted , discussed many a times post this tweet.
What surprises me is even after the reality coming out clearly in the company it still continues to see a consistent news flow in form of rumors and what not.
There was recently a very nice rumor about Goldman Sachs buying a 26% stake into the company. This source based rumor was published on every news website , financial papers and even on deal curry and other sites.
This is how the technical picture shows that possibly the news was planted by the unknown source as mentioned in the news bytes to dump the stock.
It seems the stock was pulled up nicely from 20-24 and then even at 27 and finally dumped with good volumes on the above rumor. The stock was up 12% on the date of rumours.
The stock is now headed back to 20 bucks again. Even at those levels would advise to avoid.
What is even more surprising is why would a rumor be floated with 26% stake which actually leads to an automatic open offer but none of the news reports discuss that. Well obviously they wont as it was just a rumor.
Bottomline : Dont buy on Rumours. And all that comes into newspapers is not News.
P. S – No positions in the stock and keep cursing myself for not shorting it much at 150 bucks and at 120 when it gave a technical breakdown.
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