Stock Calls & Differentiation

ccdev said...
bro, read in zemoola's blog that RHB and TA got sell/underperform on this counter. Wonder why? Does anyone have a copy of the report from the brokerage houses?

Salvatore_Dali said...
ccdev, i get access to almost all research reports... when i started to highlight the stock, i believe it was at 1.70 and there were so many sells or underperform... by ta, aseam, hwang, affin, rhb ... i think there was only one buy report by citigroup... so most were wrong since beginning of the year, and continue to be wrong ... research reports are only as good as the ability to identify the real catalysts,...
... missing out on trends or themes is not an excuse... sticking to a proven valuation modelling technique does not absolve misreading a sector or a stock, ....... the market is fluid and so too must be our reading ability of trends, stock specifics and unique catalysts ... if everything is predictable according to history, then there is no need for analysts ... at the end of the day, good analysts stand out because they have an ability to see what the markets WILL BE DOING, what the markets WANTS to SEE in the near future ... and whether that is reasonable in itself ... one can do good analysis on the stock but still make the wrong calls, there are many factors which weighs heavily on stock price movements beside just "earnings growth rate" or "free cash flow growth rate / PER growth rate" etc... the ability to pick out the real catalysts from the pretend factors is an art

Comments

ccdev said…
bro, thanks for your insightful and speedy comment. will remember your words regarding reports, and spotting trends & true catalyst.