I bought 450 shares of BHEL. What is the future after 5 years?:
Before we talk of the future, let us have a look at the recent past.
This is last 1 year.
From a price of Rs. 30.70 on March 05, 2020, the stock moved up to Rs. 54.30.
A very good gain over last one year.
Does that tell us anything about the future?
Probably not.
Same stock over last few years:
It has turned into a speculative stock and sees spikes from time to time.
There is nothing to suggest that the company will turn around and touch the past glory.
Blast from the past:
Long ago, in the 1980s or earlier, BHEL had this image as the company motto:
I wish, I could say that today.
I got this image from a friend who joined BHEL in 1978 and is now retired. Even he could not recall this BRIGHT FUTURE thing without some prompting.
Currently we do not see this message anywhere. It looks that this future has already become the past.
When the company itself has given up on the slogan —- The future is bright —, who are we to believe that?
Thanks for reading.
Have a look at the monthly chart of a BHEL
If you observe it properly you can conclude that this stock is in downtrend from 2015 i.e. it has not able to break it's lowest high. From current situation, if it crosses 62 then then we can say that it has broke it's trend and is now on uptrend, i.e. breakout has taken place and we can continue to see this uptrend further.
Next time while buying any stock plz atleast check it's trend.
Happy Investing
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