Dreamfolks - Turbulance or Crash Landing?

Some time late in the day on 1st October, my friend added me to a Whatsapp group called - "DreamFolks gossip" This was the day after we spent 20 mins of the phone discussing our opinions and theses on a short phone call while we were enroute to our intended destinations.

He was convinced, of this company's turnaround and I already was in the process of doubling down my postiion. My decision was led by the decision to cost average down, and sell on rise. Which is what I Executed.

The rules are changing, and smart businesses are preparing now. Having a single product as the hero contributor to topline is a risky place to be in as industrialists have their eyes on you. After you set up the industry, go through the effort of creating a category, corporations with deep pockets will come and take your lumch. DreamFolks, was in the process of diversifying its business and before they could achieve meaningful diversification, the port operator groups, hit them like a storm. It was perfectly concoted to make their intermediary position redundent. A One off disruption in service was used to oust a service providor that built this industry from the ground up.

Typically, when such events occur, the pessimism of the market takes over and leads to aggressive falls, what follows is a small rise (relative to fall) on an annoucement of a pivot or new business vertical. Based on the convervative predictions of cash flow, the stock price is discounted back to date and given some leeway.

Market Makers, also use this as an oppourtunity to pump prices, to off-load their holidngs. Some try to reduce their losses, while others take fresh positions near the bottom.

Please note, the articles are upload at a later date, People of the mailing list, get commetns and memos well in advance. The purpose of the blog is to track historic recommendations.