Ann: Sugarkane Field Operations and Production Up, page-8

re: Ann: Sugarkane Field Operations and Produ... I view analyst coverage with a high degree of scepticism. Their objectivity is 100% compromised by the business objectives of the broking houses they work for. Their research is targeted and timed to suit the broking house and friends, not you. Much like a journalist stretching the truth in order to achieve sold advertising targets.

They can be instructed to put out a "sell" note or "buy" note to their clients. This creates "churn" and brokerage fees for the brokers.


Most brokers notes are useful at giving you a basic understanding of a company and what the issues are. However your average analyst is usually a young guy with limited practical or historical experience. In raging bull markets they seem to make the right calls. In sideways markets they wonder what the hell is going wrong with their analysis. And then things fall apart in the bear market.

Their information is generally limited to what is market available.

Usually gullible - they are treated to the odd barbeque or "jolly" and manipulated by the companies to achieve their objectives. The deluded analyst may begin to believe think he/she is a special friend and insider.

Its always hilarious the glowing reports that come back after undertaking an analyst field trip. As if being driven to key sites and shown exactly what the company wants them to see creates special insight.

If you could faithfully consistently evaluate companies you wouldnt need to work for a broker.

Broker reports can sometimes be useful to confirm or refute what is posted by the more astutue members of hotcopper. If there is a wild difference flagged then this should be investiagated.


The control of research by the broking houses should be the subject of a thorough investigation. What I have a problem with is the way broker analysis is often marketed as independant objective analysis when it is far from it. There should be a law separating analyst research from vested interest that is tringly enforced to ensure it does not get compromised like the ratings agencies were. Only then can it become a respectable profession. Vote if you agree!