SOS Conventional Analyst

What is their report based on?

• PE ratio


• GDP growth


• interest rate trends


• war


• economic crisis


• RNAV


• DCF


• EBITDA/EV


• Dividend

Just look at the recent news on Greece,

When the market goes up, the news will be (Forbes)

March 26, 2010
A Greek default has been avoided. The ECB is holding its nose. But the test will come in the markets next week.

When the market goes down

April 29, 2010
Greece explodes -- and so does an oil rig. Here's what they have in common

If you notice, the news is after the event, so it cannot be wrong. When the markets drop, the news will say it drops because of .......

And when it goes up, the news will say because it ...............

This is the same for conventional analyst who based on GDP, interest, PE ratio, DCF, RNAV, and whatever fancy ratio to substantiate their Target Price. One month hot, one month cold. Can you imagine, if an investor follow this analyst, within a span of 2 months, the target price can range between RM3 to RM8 per share? It is a fallacy to say that this conventional analyst is objective in his statement. We are lying to ourselves.