One of my friends who works in the Piramal Glass Ltd. is stuck big time in its stock. Few months back when it was around Rs. 124 levels, he got an inside tip that the stock price will move to 200 levels in few months. He entered it @ 124 and exited around 135 quite a few times. Once the stock price remained @ 135 for few days, he purchased it thinking that it should finally move towards 200. 
However, since then the stock price has been declining. I told him to put a stop-loss of Rs. 124. He couldn't because he was travelling abroad. The stock price fell to Rs. 112 levels when he returned. At present the stock has plummeted to Rs. 104. Ironically, he is holding 1000 shares @ 135. His dad is holding 5000 @ Rs. 124. His bro and bhabhi are holding 1000 each @ 124. Classic example of how an inside tip can influence the employees and their family members.
Thankfully I joined Traderji when the inside tip was passed on to me. I stayed clear from this stock (despite of his repeated insistance) after noticing that the volume is usually low.
Now, he is asking me what to do? I invite all the fundamental and technical analysts to post your opinion about it. His father is a seasoned investor and can wait for couple of years, while others have a shorter time-frame.
However, since then the stock price has been declining. I told him to put a stop-loss of Rs. 124. He couldn't because he was travelling abroad. The stock price fell to Rs. 112 levels when he returned. At present the stock has plummeted to Rs. 104. Ironically, he is holding 1000 shares @ 135. His dad is holding 5000 @ Rs. 124. His bro and bhabhi are holding 1000 each @ 124. Classic example of how an inside tip can influence the employees and their family members.
Thankfully I joined Traderji when the inside tip was passed on to me. I stayed clear from this stock (despite of his repeated insistance) after noticing that the volume is usually low.
Now, he is asking me what to do? I invite all the fundamental and technical analysts to post your opinion about it. His father is a seasoned investor and can wait for couple of years, while others have a shorter time-frame.
