"What an interesting find and it doesn't say much for MQB scruples."
Can you explain in what way it is unscrupulous?
Are you suggesting that all broking firms only trade in the direction of the recommendations of their analysts?
If so, you clearly have no idea of the functioning of capital markets.
"I don't understand Madamswar why you have to so staunchly defend every negative post about MQB?"
It's not MQG I'm defending per se; it's plain logic that I'm "defending".
If it had been GSJB Were, Deutsche Bank, or Credit Suisse (all of whose analysts also do not have positive views on MSB with Target Prices of $3.15 and $3.90, respectively, and which have been falling consistently over that past 3 years), that were copping flak then I would contest that, too. For, they have also been right in adopting a cautious stance on the company.
What boggles the mind is how people on these threads have for years (not months, by years) quoted and lauded analysts who have had strong buy recommendations with $16.00 Target Prices, even though they have been patently wrong, but the analysts who have been cautious on the stock, and have proven to be right, get maligned as not knowing what they are talking about.
If you landed on earth having lived on Mars your whole life and someone said to you,
"Hey, come and check out this situation: Here is a stock which at one stage was valued in the market at $10.00 a share. Some analysts said it was going to go up to $16.00 and some said it was going to fall in price. And then stock price did indeed fall... losing almost two-thirds of its value and now sitting 80% below the $16.00 Target Price called by the bullish analyst who was clearly wrong. (And incidentally, the broking firm for whom the analyst with the $16.00 Target Price worked, is the one that derived fees for raising capital for the company.)
But here's the really strange thing: the people who have lost money by following the advice of the $16.00 guy still think he's OK and they keep referencing him in a positive manner; yet the guy who would have prevented you from making a loss had you listened to him, well, he's the one everyone now hates."
As a truly objective and impartial observer, our hypothetical Martian could not come to any other conclusion other than,
"These earthlings are crazy."
How could he not?
Expand
(20min delay)