EDSERVE SOF Cmp Rs.203 Will this be next EDUCOMP????-A.K.Prabhakar The stock was Quoting around Rs.20 in May2009 and Saw a high of Rs.257 this month… Daily this stock was upper freeze didn’t allow anyone to buy and when chance to buy came after which only down freeze no one to buy now and vested interest has shown BYE-BYE · 29% promoters hold, rest only public why FII and DII didn’t invest · This is low equity business and entry barrier is not there so if this business is so profitable many would start to do business as low capital is never a constrain · This company is new born baby so there is no track record of promoters and Company so why such high valuation. There has been many instance of company eroding investor wealth; can this be one bigger fool theory. The greater fool theory is the belief held by one who makes a questionable investment, with the assumption that they will be able to sell it later to "a bigger fool"; in other words, buying something not because you believe that it is worth the price, but rather because you believe that you will be able to sell it to someone else for an even higher price. [image: EDSERV.JPEG] http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=533055 March 1999 in the DOT.COM <http://dot.com/> boom, Priceline.com Internet Company which books online ticket came out with IPO at $16 many were worried whether they would be alloted share in the IPO, share listed around $85 and closed $68. Priceline.com was valued at almost $10 billion—more than United Airlines, Continental Airlines and Northwest Airlines combined which has good asset. But a company which was making a loss of $3 for each $1 earned was much fancied like bigger fool theory. The company when filing prospectus “We Are not profitable and Expect to Continue to Incur Losses.” No one cared to read the prospectus, latter this company had become a junk paper. Investor world over gets carried by the euphoria and lose money, and they never read the prospectus, do the basic homework how can a company booking ticket online have a market Cap more than 3airline put together and this is just one more company selling ticket. Average Indian Investor looks to double his money in the shortest possible time very hard to do, with world over interest rate at low any returns above 20-25% per year in India would be viewed as superlative gains.
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