Bizarre valuations and stock prices on the bourses!

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Stocks are trading at crazy prices with bizarre market cap on the bourses and this call for a caution. A company like Infosys with sound fundamentals and more importantly with zero debt and 30-40k crores cash on its books is trading near its 52-week low while many companies with over 30-40k debt are trading at 52-week high. Most stocks are rigged by operators through circular trading racket and SEBI needs to put these companies on the watch list than declaring a few companies on the shell list which already were defunct and not active on the bourses.

Investors should be cautious and only invest after going through some basic fundamentals of companies they want to buy. Television business channels too should be cautioned for giving buy recommendations of stocks as this fools small investors to buy stocks that are worthless. The Eiffel tower was not built overnight and investors should avoid fly-by-night companies that actually would destroy investor wealth than help them build a fortune!

(The views expressed by the author in the article are his/her own.)