Inexperienced question

[NOMAD1]

Hi Bought SHP some time back, the recommendation on OST was to sell when it went to about R90 per share, and i sold, made a sweet profit, this time SHP is at R169 per share :-( Does one actually follow the recommendation? Im holding 10 000 in LHG and its a lovely profit and recommendation says sell. Does one actually sell LHG cos of recommendation? Regards

[BC02]

dont ever listen to those recommendations! Hopefully lesson learned. I sold Mr Price on a recommendation @ R40 (from an independant financial analyst), still kicking myself today.

[BC02]

oh and if you actually scan through the SBK OST recommendations you'll find that 80% of all the shares have a buy recommendation. (including resources for the past year). Those analysis arent worth the screen pixels they're printed on.

[NOMAD1]

lol pity we cant take them to court !!

[sponono]

you cant sue them they have a long disclaimer. if you look at MSM with a PE multiple of 36 their recommendation is a sell but if you look at the chart you can see a very clear reverse head and shoulders: who do you believe the chart or the analysts? I go with the market.

[#6]

you want to take someone to court because of their inability to predict a random event? You guys need to stop your lazy criticism and look at exactly what a sell recommendation actually means. It doesn't mean a stock will go down, it means that analysts forecast that the stock, at these prices, will underperform the market in the short term. It means that they believe that there are better opportunities out there and their recommendation to funds is to go underweight on the stock in particular. There must be over 200 funds out there in SA alone, not counting ETF's and foreign investment. And you are making your judgement and decisions on 2 to 4 analyst opinions?

[Rams]

its all about the system...if you want to trade according to the recommendations, then do so, the recommendations has to be right only 33.333% of the time for you to make a profit...also look at the sell recommendations on shares that did go down! Also take your profits in thirds, keeping the last third risk free for the full move....