Analysts: They are frightening at times., page-5

Perthsnooper,

If companies and management can't get it right from time to time, how can we expect analysts to always get it right.

Throughout my time on HC, I have always argued that investors must research their heads off and gather as much information as they can from different sources. Only in this way can they act with certainty, either as to the appropriateness of their investment, or as to the value of their investment proposition.

Unfortunately, however, with the fickle moves in and out of companies such as ERG, PWR, SOH, MAY, etc, most investors out there treat the stockmarket as a punting arena.

They get a whiff of something good happening with ASC or with AUN and flock to it in droves, without doing the research beforehand. Fast money in these circumstances can also quickly become burnt money. Just ask those people who punted up ERG last week to 29+c only to see all the gains returned (and then some more) 2 days later.

Yesterday's fast movers appear good on the surface (at least for ASC). But for AUN, the drama is still unfolding with flattening subscriber numbers, falling ARPU values, declining revenue from XYZ, and less cash in the bank than before. Add to this a parent without deep pockets, and other members of the global UGC group falling into debt default, and the question of AUN's survivorability becomes very interesting.

For those investors who went into AUN yesterday hoping to double their money, I very much doubt it.

For those daytraders out there who acted quick as lightning and are now ready to move somewhere else, I would suggest just that, invest somewhere else.

I have always liked AUN - as a PayTV proposition; not as a basketcase.

At the moment, AUN's future is far from assured, just like what happened to PAS and TMN almost 12 months ago.