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Lion
Leopard Fox Theory
This
is discovery of our Chief Investment Advisor.
This theory describes behaviors of different stock price
movement:
LION:
Lion
typically hunts only when he is hungry. Stock price
of genuine companies goes up only on positive development
with long term’s consistency of enhanced merit.
Lion
is the only animal, which looks behind, after walking
too far, from which way he came from. (Sinhavalokan).
Similarly genuine management consistently reviews from
where they have come, disallowing initial success to
ride over their future planning and expansion.
LEOPARD:
Leopards
run very fast @ 200 km /hr but if they cannot hunt in
its run they loose lot of energy and have to rest for
one hour to regain the stamina. Word 'leap' means move
quickly, suddenly, conspicuously and forceful jumping.
Stock price of relatively
weak company
may increase dramatically but if its fails to catch
up on underlying merits the gullible day trader becomes
long terms investor though back door.
FOX:
Fox necessarily follows big hunter animals and
does not take trouble of hunting on its own. It satisfies
hunger from balance of left over from other's hunt.
Stock which are worst in fundamentals but go up in the
industry and market euphoria by following rally in industry
leaders & bell weather stocks are fox. People who
trade or invest in such stock loose heavily and very
often go bankrupt.
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