How did I design my ‘Framework to sell a Stock’ — Gland Pharma example

What is the fuss?

This is the post of my stock market learning, and developing a personal framework to buy, and more importantly sell a stock. I use Gland Pharma, a recent 2020 IPO company, as an example. As I bought this stock, driven by FOMO, kept on building position due to incomplete research & false hope, but finally built a framework to take the decision for me on buy/sell.

Image Source: vecteezy.com/vector-art/26281292

This post is not about a stock, but about my initial years’ learnings in stock market. And finally being able to sell a stock which constituted 10% of my portfolio, at a staggering 35% loss. Learnings from success are often fleeting, learnings from own failures mould a better & wiser you. Lets get started.

The Company — Gland Pharma

Gland Pharma started as a simple contract manufacturer of liquid APIs (parenteral products) in Hyderabad in 1978. It slowly expanded into generic injectables business, and became a global dominant niche player in the same. Generic injectables are drugs that are manufactured for administration through intravenous or intramuscular injection. They are difficult to manufacture, owing to high quality and safety standards to be met. But first, a little bit about generics in general :-).