troubled twins

To make money in stocks, usually, one has to stay focused on the story for a considerable period of time. The story is linked to the business behind the stock, not to the ticker price. So here it goes: in the short term, you do not know how the market prices will react; but in the long term, the prices are more aligned to the business performance. If the business does well, the stock prices go up. 

The risk in the business then depends upon the type of the business, the operating leverage, and the financial leverage. For instance, you take on too much debt, the business becomes that much vulnerable. 

Both Rcom and Rpower seem to have failed the investors big time. Unless one has played the game of high-and-low prices periodically, which is never easy, these businesses haven't given adequate returns to the investors.

Rcom is worth Rs.87 b now, from its peak of Rs.1742 b in 2008. 

Rpower is worth Rs.110 b now, from its peak of Rs.813 b in 2008.

Both businesses earn poor returns on capital employed. I wonder when they will be able to turnaround.