You might be too young to remember it, but one of the regulatory responses that arose around global securities markets after the spectacular bursting of the dot-com bubble some 15 years ago was that investment banks were legislated to better demarcate the distinction between their investment banking and equity research arms.
One of the practical ways that demarcation had to take effect was for all equity research to specify whether or not the broker had received fees – or sought to seek fees – from listed companies on which the broker’s analysts published research.
Moreover, in an attempt to raise the credibility of the broking community (which had been decimated after the dot-com collapse) broking houses were required to provide a history of analyst recommendation as well as target prices.
So in order with keeping with world’s best practice, it might be both a decent and a fitting thing to do the same in this instance. Nothing wrong in better equipping Mum ‘n Dad investors to make sound investment decisions, eh?
To save you the trouble, I think Bell Potter raised equity capital – as lead manager - for MSB twice, once in 2010 and again in 2013.
Also, Bell’s also received fees from the company from facilitating a sell down of a line of MSB stock at some stage (I don’t call exactly when, but I do know it occurred).
Also, when the stock price was above $9.00 Bell Potter had a Target Price of some $17.00, or $18.00 (I forget the exact figure, but I know it was in the high teens).
But like I say, I don’t know the exact number, but you – or anyone, for that matter – could correct me if you (or he or she) feels so inclined.
Just for good practice, is what I’m saying.
For the benefit of Mum and Dad investors, mostly.
Regards
Adam
MSB Price at posting:
$4.06 Sentiment: None Disclosure: Not Held
(20min delay)