Aust brokers Goldman & Macquarie say SELL, page-33

"It is well understood that the market for biotechs is immature and there are very few good biotech analysts in Australia."

Not even the much-vaunted Bell Potter analyst and his oft-quoted, but now-stale, $18 target price for MSB?


Actually, the long history of drivel put out by all manner of Australian analysts leads me to conclude that there are very few analysts covering most sectors of the Australian market.

And yet stocks in many sectors perform exceptionally well, creating untold wealth for their shareholders over long periods of time.

An assertion that there should be a correlation between the shareholder wealth created by a given company, and the quality of the analysts covering that company, is a most astonishing one.

That's effectively saying the reason a company can't create value for its owners is because of the bad analysts that follow that company.

In the investing game one often encounters some strange theories, but it is quite rare to come across something that specious.

Quite funny.