Forum Archive Index - June 2000

[Sarah Corkill <sarahcorkill@yahoo.com>]

Dear fellow sharechatters,

I have been reading with interest the postings
surrounding DF Mainland & their research.  For
interests sake and a better understanding of how
things work I would just like to mention afew things.

Brokers who are members of the NZSE are bound by Rules
& Regulations.  There is a rule relating to advice
given to clients that says a broker must have
researched any material given to clients.  This is why
brokers such as Direct & Access don't give out advice
because neither has a research department.

Research is just that, looking at a company's past
performance and trying to pick from historical
information what the future performance of the company
will be.  You may not agree with the research and as
an investor it is your choice to follow their analysts
views or form a view of your own.  It would be
interesting to do a study of previous recommendations
by NZ brokers and see if performance matched analysts
predictions.  I read once a report like this was done
on the US markets and around 90% of analysts got it
wrong looking back on their research.

This doesn't mean that all analysts are bad but it's
like predicting lotto numbers by looking at last weeks
result.  

Regards,

Sarah Corkill



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