The reason I write this post is that even though I go through the analyst reports that are accessible for free on the internet, I do not go by their buy / sell / (whatever) recommendations. They help me with more information of the company and the factors that can affect the company.
For instance, the following document recommends a dozen Midcap stocks:
Edeweiss MidCap Stocks
But none of them filter through my criteria.
Even analysts can go wrong. Analysts have an edge over retail investors as they have access to the company management, other market research, etc. In spite of this, I feel that even they cannot predict the infinite factors that could seem to affect the markets correctly. Ask anyone who invested a large amount of his money in Sasken when it was hovering around 500 in Jan 08, following one of the many "analyst reports". Here is one of them where Merill Lynch has a buy recommendation with a price target of 600!. Sasken had hit a 52 week low of 88 after the Jan crash and is still hovering below 160! Personally, I use analyst recommendations to supplement the information about a company and add companies that are doing good to my watchlist.
No wonder that any Analyst Report has a last page that boils down to "Invest at your own risk!"
UPDATE : fellow blogger puts it in a humorous way.
For instance, the following document recommends a dozen Midcap stocks:
Edeweiss MidCap Stocks
But none of them filter through my criteria.
Even analysts can go wrong. Analysts have an edge over retail investors as they have access to the company management, other market research, etc. In spite of this, I feel that even they cannot predict the infinite factors that could seem to affect the markets correctly. Ask anyone who invested a large amount of his money in Sasken when it was hovering around 500 in Jan 08, following one of the many "analyst reports". Here is one of them where Merill Lynch has a buy recommendation with a price target of 600!. Sasken had hit a 52 week low of 88 after the Jan crash and is still hovering below 160! Personally, I use analyst recommendations to supplement the information about a company and add companies that are doing good to my watchlist.
No wonder that any Analyst Report has a last page that boils down to "Invest at your own risk!"
UPDATE : fellow blogger puts it in a humorous way.
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