It Pays to Read!

Read this one commentary ( Why punters should start reading ) by R. Sivanithy posted on Business-Times online on 7th Oct 2005.

QUOTE:

HOW many retail investors take the trouble to fully read research recommendations that brokers issue, especially when these recommendations are on small caps or second liners? From observation and anecdotal accounts from dealers, the answer is: very few. Instead of scrutinising reports to judge if the assumptions or projections are reasonable, there is a strong tendency among small investors to just look at the heading and target price of a research report before jumping in (or out, as the case may be)....

How to achieve this? A good starting point would be for retail players to read critically the dozens of reports issued each week before taking the plunge, especially for companies that have no earnings yet but whose shares have risen to all-time highs. This way, brokers will be forced to be more circumspect in recommendations, while investors may well be spared the pain of large losses in the future. Who knows, if everyone does this, all concerned may actually learn something in the process.

End Quote

yup... yup

Gotta remind me-self this..... R E A D ...... R E A D !!!

:D

Which reminds me of S&P coverage on Mems. Now if i am interested in Mems, shouldn't i judge if S&P's projections and assumptions made are reasonable onot? Would Mems being to grow at an annual compounded rate of 86.4% for the next 2 years as suggested by S&P?

How?

:D