Beware of brokerage buy/sell reports, conflicts of interest.

PaulRen's picture

Beware of Thai brokerage stock- buy/sell reports.  Over many years I have often noticed discrepancies, omissions -or worse. Sometimes these are honest analyst mistakes of course, other times there can be and there are clear conflicts of interest -which are not so obvious to most investors.  Just fewest examples: its not mentioned in their report how the company has signaled a change in its dividend or dividend pay-out policy, or a dividend omission.  Or, its not mentioned the companies' clear expansion plans and the amount already invested/announced, or new potential large contracts pending or already in the works & announced.  There are far more of such twists, I can go on, but will stop here... I've seen this ever so often at times in amazement and am about to report on one real example, such to contributing members.  

Realize, what can happen is: a brokerage firm is told by its institutional big client it wants to accumulate this stock, so then to pls. tame down the enthuse buy-view and not go into too many details.  Hence the brokerage firm is still on record with a positive view, however dilutes the reasons for so, only to so "accommodate" its big clients not to compete along with other buyers in that stock.  And visa versa, taming down its negative view as some "big man" still wants to get out. :) 

In the long and recent past when I notice something like this, yes with evidence, I sometimes write the analyst directly questioning in a polite way why? Only to just about never get an answer back.

Best Regards,

Paul A. Renaud.