How to manage News Flow - like a Hero!

protrade

Well-Known Member
#1
Last week, Hero came out with disappointing numbers. Even lower than the lowest estimates. And the stock predictably corrected.

But yesterday, pretty much every news site out there had articles painting the Hero story as a major positive.

Here’s a sample: all from Yesterday

Hero Motocorp bullish on Demand revival as it targets Festive season sale

Pawan Munjal - Hinterland Hero

A Hero in Good times and Bad - rides easy

Hero MotoCorp riding high - Buy for the long term

What’s driving Volume Upgrade for Hero MotoCorp.

I guess all the News outlets woke up in the morning, and realized that they need to do a glowing article on Hero.

So that the market doesn’t talk about the real issues facing Hero. The prominent shift in sales towards cheaper bikes. Their EV complication because Hero Electric (which has no connection to Hero Motors) has the rights to EV, which means Hero can’t play the dominant trend. BS6, which was supposed to push up pricing, has bombed - because of demand falling off, Hero is selling BS6 at much lesser than it would have liked.

And most importantly, the collapse in earnings, means that high Dividend, which is the primary reason markets love this stock, is no longer likely.

But why worry about the reality when you can spin some good stories! And best part of it, none of these articles have any news. They are just feel good articles about Hero!
 
Last edited:

newtrader101

Well-Known Member
#2
It must be the same with most stocks, hence contrarian investing.
 

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