gmp report - prepare to be rerated, page-46

What a strange beast HotCopper is!

Andrew 1234 just gave us one of the finest posts on company valuations as you are ever likely to read ...and no comment and not that many thumbs!

The absolute essense of analysts valuations and what they mean to investors is in his post and it's well worth re-reading.

Like many others, it's stuff I know but there are occasions when you need to be reminded of stuff you know but have forgotten or are not practising.

Analysts and undertakers share a common function.

The undertaker can prepare you for death...but he doesn't hop in the coffin with you! You go on the journey by yourself and usually because of all the things you have and haven't done throughout your life (poor health options, wrong place, wrong time etc etc)

The professional share analyst can make assessments and valuations but he doesn't invest with you and won't share in any losses you sustain....their disclaimers see to this!

Andrew didn't say it, but I will (from many, many years of experience):

- Analysts aren't infallible...they do make many basic mistakes both factual and interpretative
- They are over-worked with a consequence they are are not across all the facts
- Very often they don't invest their own money in the research they produce - what does this say?
- Often their interpretations are skewed to generate a certain end result
- They have an over-reliance on their brilliant mathematical computerised analysis models..and every firm thinks theirs is the best! But as we all know...GIGO (garbage in - garbage out)

I'm pretty sure that the excellent posts by Mihal and Muppett and others above have certainly put a torpedo into the GMP upgrade analysis. I'm not even bothering printing it out.

At the end of the day, you assess value as Andrew has suggested and I'm sorry, the continual whinging and whining by a few with very little factual back up cannot change my mind...CCC IS BLOODY GREAT VALUE!