Copy of post from SS.Newspaper reports like this won't help the...

Copy of post from SS.

Newspaper reports like this won't help the SP

'Independent' research from US comes at a price
The Australian Financial Review --- Page: 3 : 31 January 2005
Original article by Eli Greenblat


ABIX Summary
A warning has come from the Australian Stock Exchange (ASX). It has warned investors not to put too much trust in "independent" research from the US, paid for by certain companies in Australia. The ASX says the reports should be taken with a "grain of salt". The California-based Cohen Independent Research Group is selling its "independent" reports to Australian biotechnology groups, claiming that the reports can lift their stock price by up to 200%. The companies often pay large sums to get the reports. In the US, a firm can say that it is independent as long as it discloses its commissions. Norwood Abbey paid $US22,000 ($A28,400) for research from Cohen. Norwood Abbey wanted "greater recognition" in the US