Analysts Reports

arbitrage

What is the opinion on purchasing analysts reports as a small investor?

~€100,000 equity portfolio.

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For example:

$300 for a report from Moodys Analysts on Deutsche Bank Banking Statistics, published Jan 11, 2012.

For example if I were to invest €10,000 in Deutsche Bank on the back of the advice contained in the Moodys report I would require a return of almost 3% net of tax to cover the cost of the analyst report.

Then again the analyst report may not encourage me to invest in the stock and after spending $300 I will have to start looking elsewhere but as they say, saving money is the same as making money.

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Where do you get most of your analyst reports from?

ROK ON

Raeding annual reports, doing your own valuation analysis and analysing charts is largely free.
Do your own work. Its your money, thus your responsibility.

hmmm

A lot of stockbrokers will give you free analyst reports if you become a client. Are they worth the money? As an institutional investor shifting millions around, most probably, as an individual, not sure.

zephyro

arbitrage wrote: »

What is the opinion on purchasing analysts reports as a small investor?

~€100,000 equity portfolio.

My opinion is they're a complete waste of money but I guess being a quant I would say that. All the information in them is public knowledge already, and why would one analysts opinion be any better than the others?

arbitrage wrote: »

Where do you get most of your analyst reports from?

I avoid them like the plague!

arbitrage

Some would contain information on the industry as a whole or external factors that would not be in an annual report or that I would miss as a fairly inexperienced investor.

I would do my own research, as much as possible, and if I liked a stock from that I may get an analyst report to reassure myself before jumping in.

An analyst report would not be the entire research I would do but while I don't like paying the large fees with a managed fund I do want to get a professionals opinion before investing my hard earned.

neris

Do your own research and make your own decision. What one analyst says can be different to what another might say. Just say just look at the company your interested in and see the buy/hold/sell recomendations and you,ll see the differences. Also some of them may have a bias if the company they analyse is a client

delux

If you can find an analyst who advised to short the banks in late 2007/early 2008 then consider their opinion worthwhile, otherwise remain to be convinced before parting with your money.
I don't think that's too much to ask when you think about it.

.. actually if you find any that did get the banks collapse right please post here because i'd say they're a rare find!

betonit

I was watching Bloomberg the other day before the apple results. 2 experts were on, both had completely opposite views on whether to buy or sell apple, both very convincing.

OfflerCrocGod

Your guess about the future is as good as anyone else's.

You must also understand and be able to agree or disagree with what the analyst is saying otherwise you just invest where you are told blindly which I'm not convinced is a good idea.

Educating yourself in a broad manner is probably the best use of your time so I'd invest in an FT subscription instead.

Jim2007

arbitrage wrote: »

Some would contain information on the industry as a whole or external factors that would not be in an annual report or that I would miss as a fairly inexperienced investor.

Banking and insurance are among the most difficult of businesses to understand and not for the inexperience in my opinion.

arbitrage

I emailed Davy and Goodbody stockbrokers to see if they would supply me with analyst reports free of charge with an execution only account (I gave them an idea of how much I would initially lodge to the account).

Replies:

Goodbody:
Hello K,

There is access to some analyst reports free of charge. For example, our morning comment is available on our site.


Davy:
Dear K,

Many thanks for your email. Having an online account with Davy entitles you to full access to our award winning research.

http://davy.ie/GenericResearch?page=ResearchHomepage

I have also included an online application for your records.

If you have any questions please reply to csu@davy.ie or call the Dealing Desk on 01-6149000.









What are your experiences with obtaining free analyst reports from your brokers?

delux

I'm really trying to stop you losing your money. Please don't follow what analysts say. As I said earlier ask them for reports they did in 2007 and 2008 on the Irish banks.
Why do people listen to analysts. Find one who predicted the bank collapse. Some well known hedge funds were able to do research and predict the collapse why couldn't the analysts???

A quick Google came up with this from Mar 7, 2008 :

Anglo's share price fell 10.7 per cent, or 103 cent, in trading yesterday before closing down 6.3 per cent, ...
...Davy banking analyst Emer Lang said she was puzzled by the market reaction, saying the figures were in line with expectations. "We saw the statement as reassuring. I am surprised some have taken flight and the market has reacted so negatively. The bank is taking a more jaundiced view and is not taking on every loan that comes its way. I would interpret that as a bank that is managing its way through tough times."

arbitrage

delux wrote: »

I'm really trying to stop you losing your money. Please don't follow what analysts say. As I said earlier ask them for reports they did in 2007 and 2008 on the Irish banks.
Why do people listen to analysts. Find one who predicted the bank collapse. Some well known hedge funds were able to do research and predict the collapse why couldn't the analysts???

A quick Google came up with this from Mar 7, 2008 :

As I said previously I just want to get a few analyst reports without paying hefty charges.

My investment strategy will not be based on these reports.

I am not looking to debate the pros or cons of the reports themselves, just how to source the reports.