Here's another blog on the same issue yet again...
Should OUR financial news be used as a TOOL to promote a given stock?
I'm talking about the TA Research report which was given extensive coverage on the local papers: Business Times: Scomi to bid for bus fabrication, Star Bizweek: Scomi eyes more jobs By TA RESEARCH and blogged on Jeff Ooi's The RM4.4 billion test... ( 2 ).
Let's look at the articles from an investor perspective...
Let's start with the article posted on the Business Times..
- SCOMI Group Bhd will submit a bid by the end of March for a contract worth some RM120 million to make body parts for about 400 buses for state-owned Syarikat Prasarana Negara Bhd, sources said.
Hmm... Scomi Group will submit? How does TA knows for sure? If it does know that Scomi will submit a bid, isn't this insider info? And I am so sick and fed-up to read our financial news splattered with phrases like sources said or according to soures. Certainly this was not the first time that Maggie and its Sauce appeared on our financial newspaper and unless something is done about it, this will not be the last time either!
- "The bids are made through its 71.5 per cent-owned Scomi Engineering Bhd," a source close to the group said yesterday.
Again.. who is this source? And again.. isn't this insider information? Is this allowed?
- The source said the outcome of the bus fabrication bid may be known only after March. "It's an open tender made by Syarikat Prasarana, which will be closed at the end of March."
Err... what's the purpose of open tender if the source has all these info?
- Meanwhile, TA Securities said the fabrication contract could be worth some RM120 million, assuming an average fabrication cost of RM300,000 per bus."The PBT (profit before tax) margin is expected to be around 7 to 8 per cent," the firm said in its update on Scomi dated yesterday.TA Securities has maintained its "buy" recommendation on Scomi and has set a target price of RM1.47, which gives investors a 30 per cent upside from the current share price level.
Now if you look at the whole article.. the whole selling point is that according to SOURCES, Scomi will be bidding for a huge job..
me say?
If Scomi does win the job or if Scomi does bid for the project.. how on earth does this source have all the information? Insider trading anyone?
Now anyone can be a source!!!!
The makcik cleaning the toilet can be a source. So can the jaga-kereta boy at Scomi. So can the jaga kereta boy cleaning the buses for SPN.
How? The press helping TA Reserch spitting out rumours ka?
Ok... let's look at it from the share market point of view.
- Scomi closing price on Friday was 1.15.
- Scomi Engineering closing price on Friday was 1.01.
Current traded price at 4.02 pm, Monday 20th March is ..
- Scomi is now at 1.20. (up 5.2%)
- Scomi E is now at 1.11 (up 9.9%)
See how profitable it is to have such a blatant write-up like that?
Like this.. again I ask... why don't we name our Financial News as the 'Hot Sauce Tips'?
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8 comments:
nm,
i had long ignored those maggie source news from local dailies. And those analyst's reports are taken with a pinch of salt. they are just extra information for me but i wont make buy/sell call based on their report or rumor.
Those financial analyst from brokerage has to jaga their bread and butter biz which is corporate advisory and investment advise group (unit trust). Why do u think they want to share information with us (ikan bilis). They are working for big fish (sometimes they are the big fisH) and those maggie source is just one of their baits to seduce us to part with our hard earned money.
Just take those information as info-tainment.
from the angle of insider trading, have you heard any brokerage analysts being charge by SC? Looks more like a paper tiger.
One more thing, the simple price action might not imply that the big fish is willing. They need to offload their holdings to ikan bilis. It's pretty complex and we cannot use the top price minus last closing price as their profit. I think u can understand this.
hhc,
U know the irony of it is, most folks just do not care because articles like this sometimes creates punting opportunities in the share market. And as long as they WIN.. everything is A-OK!
Ahh... but when they lose... sigh.. then only they start caring!
Sigh!
I have been in the stock investing business for 20 years, lost lots of money in the first 10 years but made millions for the next 10 years and never look back now. How to make money is not easy but the first step is not to be short sighted and listen to craps that this blogger is churning out. Else you will lose all golden opportunities and sulk like the half baked blogger here who in my view has lost more money than he had ever made. Ten years down the road and you will still be regretting. Money cannot be found in this blog. Money is only lost here.
smart after making tons of million million you still have time to visit and insult our poor community here?
You should be ashamed of yourself. By now, I tought you should be locking horn against warren buffet or george soros in the land call USA...but incredibly you are still here with us sorting out the bullshit.
What lah you. Damn chialat.
Hotcili60,
And the most DISGUSTING thing here is this so-called 'smart' is probably that IDIOT 'WILLY WANKER' who is such a coward that he has to use 'IS' nick.
See what an IDIOT we have!
"Money cannot be found in this blog"
ROTFLMAO!!!!
I vote for this to be the smartest comment of the year lah!!!
nm,
I dont see how to make million just by reading nm comment but i definetely sure that i wont lose MILLION if i take nm's critism of certain comp in BSKL like worlwide, megan , and bla bla bla seriously.
maybe smart makes his million by promoting certain stocks which no one will buy unless it's painted with beautiful pictures? Or maybe he is someone like "Jose B".
So nm is effectively exposing some of hid bread and butter which caused him to be so mad.
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