Research Reports Good For Stocks??

My dearest Moo Moo Cow,

Saw this news article posted on the Star Biz: Research report good for stocks

• Bursa Malaysia initiated CBRS in 2005, and the research reports on selected companies are available for free to the investing public on the exchange's website (www.bursamalaysia.com).
  Companies covered by CBRS pay RM30,000 each for two years.

I have one opinion. As Bursa is a business entity now, this CBRS program should really be funded by Bursa itself!!

Do you agree?

Here is my opinion.

Charging rm30,000 simply is too much. It's insane. Think about it.

From the owner's perspective. Would you pay so much money for coverage?

From the analyst's perspective. Would you not tend to be a bit generous on your viewpoints?

From the investor perspective. With so much money involved, would the investor get an un-biased report?

How?

On the other hand, let's look at the positives if Bursa was to foot the bill.

1. From Bursa 's perspective, this CBRS is part of a program to generate interest and awareness in their own business. More awareness equals to more business. Yes?
2. At this moment, coverage is still lacking. So many companies aren't being covered. Is the rm30,000 the reason? So without being forced to pay, we, the investors could see more coverage on more companies, right?
3. Without the rm30,000 price tag, the analyst has more freedom. Perhaps, we could avoid cases where analysts are being way too generous in their write-up. Meaning we avoid incidents where analysts give way too optimistic target prices and recommendations.

So how my dearest Moo Moo Cow?

Do you agree that Bursa should foot the bill for this CBRS?

Well, I do.