Because Real estate sector has no hopes of turnaround. Most of the Real estate companies are sitting on tons of debt trying to sell inventory at crazy prices. Unitech is not the best of real estate companies. But as it always happens, when markets turnaround - beaten down and junk stocks rise like crazy.
Here's the Unitech Weekly chart
Unitech was trading at Rs. 12 around end of March 2014. And then it just took off and now trading at Rs. 36...crazy move on just HOPE and FALSE HOPE
This is the kind of stock one should avoid at all cost. Also, when stocks rise like this - then it does raise alarm bell. Is something happening in the company which I am not aware of - possible?
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers