Some stocks are multi baggers. That is they multiply over a course of
few years. When an investor invests in a company which is low priced
tend to appreciate over time due to high growth, improving market
sentiment etc,
Why the stock is undervalued in first place? It may be a
growing company in the latest industry or it was bottomed out due to
market conditions or debt ridden.
If you buy debt ridden non performing, dividend paying company on borrowed money then those companies can make you beggar over a course of time or within few months if market collapses. Turn around stories are rare and if you invested in those companies consider your self lucky. You may not be able repeat it.
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