There are huge problems listening to companies like mqg they have a conflict of interest and secondly even it they are wrong, they dont invest in the high level of spectuation stocks like AAR. They have a conflict of interest in forcasting metal prices because they have different investment goals which often conflict with the others including the companies they hold. Large investment banks are often in and out very fast to prevent exposure to downside. Its in their interst to talk up comodities long term so they make larger profits due to long term market confidence. I dont like investment banks because they enguage in high risk behavior, they try to milk growth out of markets and put previous company growth at risk due to unrealistic goal setting and greed. A good example of this is the purchase of manny infrastruture assets with huge borrowings. If you were to take a look at BBI you would have noticed most of the equity was good will, 3 billion the rest was debt. If business takes a downturn then these companies loose their shirt. Most analyst get it wrong and those who get it right usually because there are so manny forcasts its quite often by accident. There is only one thing that is certain, at these prices and 20 billion being poored into Africa each year by the chinese and probably another 15 billlion world wide, prices will come down. AAR might be a good gamble now but in my view it certainly is gambling. Another good correction will send a lot of small caps hammering down.
AAR Price at posting:
0.0¢ Sentiment: Sell Disclosure: Held
