Many bulls will claim
the large decline in share price when Mr. Papa resigned is an overreaction to the news.
Not exact matches
Certainly no one is predicting
large declines in profits or
share prices, but rather a period of much more modest growth.
If one or more of these institutions decides to sell
in amounts
large enough to cause a
decline in world gold
prices, the
price of the
shares will be adversely affected.
Now, it seems to me, looking at the
large forceful
decline in BlackBerry's
share price (as indicated by the
large red candle
in the stock chart above), that investors are almost hysterically overreacting to the deal news.
Over many years the
larger dividends paid on more
shares bought at lower
prices will more than make up for the initial
decline in your portfolio value.
In fact, the
share price might even
decline if investors still insisted on a
large discount... one that's based on a much lower level (post-acquisition) of net tangible assets.
LIC is currently considered to be among the top three
largest domestic investor purchasing equity on the stock exchange
in order to gain benefit from the
decline in share prices in India.