If you are an active investor or trader, it will not be possible that you have not heard about Infibeam Avenues. Infibeam is one of the recent company which lost 70% of its value in a single day. Such a massive crash can easily give heart-attack to most
Let’s check some history about Infibeam stock. Below is a 1.5-year chart of Infibeam stock in the weekly time frame.
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Infibeam stock has crashed 40% in a single day couple of times. The most amazing thing about the stock is that it quickly recovers from the grave and make a 52 week high again.
Below are some stocks which lost more than 40% in a single day. On the top of the list is Satyam Computers & we all know what happened to that company in the end. Out the list, only Titan was able to recover from such massive crash and rest are history.
Fundamental Aspect of company
Infibeam is an e-commerce company which develops and provides a cloud-based technology platform, and e-commerce infrastructure and logistics support for various merchants, products, and services in India. The company owns and operates the two online web portals, Buildabazaar and Online Shopping India.
Most of the readers will not believe that Infibeam is an eCommerce company and a direct competitor of Flipkart and Amazon.in. So they are engaged in a highly competitive business which hardly has any entry barrier. Therefore sooner or later they could be either acquired by another giant will have to shut down their business.
Should you invest?
After understanding the volatility of the stock, it is quite evident that this is not an investment grade stock. One can trade it for some time but with strict stop loss and target. Recently, the stock has crashed more than 70% and is one of the greatest falls in its history. Therefore, one should avoid the stock as of now (CMP Rs 52).