Marri,
The analysts are right. It is worth five cents. If it stays this way forever!
They've valued it as an entity that would have to pay down its debt "as and when"
From a text book point of view. That's correct. But the reality is very different. funds and analysts are different beasts.
I'd listen to a fund over an analyst any day.
The reality is, things do change, as you've said.
Only a select few have decided the change will be for the better.
But they got in a while back. We are now left with day trading pissants. I remember one day in December the stock was driven down on $30,000 worth of trading. Not one guy. Lots of pissy trades.
Whenever a broker rings me with an analysts report, and I've taken the same position already, I get very nervous.
As Warren Buffet says. Wall street's one of the few places where people in Rolls Royces take advice from people who take the train.
Bloomberg did a three year survey on the accuracy of the major brokerage firms in New York.
Have a guess what their strike rate at picking stocks was!
13%
They were wrong 87% of the time.
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