AK’s post is a very timely one.
A quick summary:
QAF was trading at 93c last year, with a PE ratio of 16.6X.
Today, QAF traded at $1.14, with a PE ratio of 14.5X, excluding the one off gains.
Recently, I have sold off a stock for 5 years of upfront yield. Very rightly so, people have commented to dig deeper into my rationale and decision for selling. I think such a question should have an answer, at least to myself personally, if I do not want to divulge the real reason publicly. However, I have no qualms about sharing my reason.
Personally, I do not believe in the Efficient Market Hypothesis (EMH). I think behavioral finance ensures that this cannot be true. The current stock price is not the entire wisdom of the market put together, it is the price where all the active buyers and …