Hi Sana, you are probably right in saying that it's not a great business. It's an easy to enter business with many prayers .. small, medium n large. It is very competitive n very vulnerable when the economy take a negative turn.
My reasons for investing in the company at that time was that it was trading at bottom or near bottom. When you buy a counter at it's bottom you cannot loose money. The other reasons were based on fundamentals .. mainly that it was trading at far below it's nav and cash holding. Company cash holdings was much higher than it's capitalisation. And also the company has no debts. (Details can be found in the original posting.) Other considerations were that at it's bottom it was trading on a pe of 1 (one) .. meaning the capitalisation was equal to it's full year earnings. This does not make sense. Further there were always fears of s-chips, in which case I look at the credentials of the CEO n main shareholders and was quite comfortable with them though it doesn't mean that they will not do 'funny things'. But in investing, these are the risks one has to take.
Regret to hear that you had bought high n are in the red.
