What three-four years can do to a business

Year 2004
The exports from this sector has more than doubled between 1998 and 2003. The stock prices of companies have gone up by 5 times between 1998 and 2003. Everybody is enthusiastic about the sector and the companies. The financial web sites are recommending the sector here
EquityMaster 1
EquityMaster 2

Year 2005
The companies have become more enthusiastic. The demand is growing and everybody is investing heavily to increase capacities. The stock prices of companies are up by 3.5 times on an average in the last year itself. See the talking here
IBEF
Financial Express 1
Financial Express 2
Rediff

Year 2006
The stocks have gone up by 2-3 times in the last year itself. Now the financial analysts have started looking at the stocks and the sector. They are recommending investors to buy the stocks after the stocks have gone up by more than 30-50 times in 7 years. See how they are talking here
Management Paradise

Fast forward to Year 2008
The stocks are down by average 90%. The stocks the analysts recommended in 2006 are down by 50 to 80% too. See the impact of world recession on the sector here
Economic Times
Express India
Rediff

Financial Analysts are the last to recommend a good stock. Don't listen to them.