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Why You Should Never Listen To Analyst Recommendations!

Why You Should Never Listen To Analyst Recommendations!. Basil Qunibi. What are Analyst Recommendations. A group of stock analysts following a stock will give that stock a rating from 1 to 5, 1 being a strong buy, and 5 being a strong sell.

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Why You Should Never Listen To Analyst Recommendations!

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  1. Why You Should Never Listen To Analyst Recommendations! Basil Qunibi

  2. What are Analyst Recommendations • A group of stock analysts following a stock will give that stock a rating from 1 to 5, 1 being a strong buy, and 5 being a strong sell. • They rate these stocks each week. The ratings rarely change.

  3. Common Interpretation • The common belief about analyst recommendations is that they are the most important information you can have about a stock. The common investor will go to www.finance.yahoo.com, look for the most recommended stocks and buy them. FOR MORE INFO... www.finance.yahoo.com

  4. The Real Story • ANALYST RECOMMENDATIONS ARE BS!

  5. WHY? • Not because analysts are stupid, or that they don’t know what they are talking about. • In fact, someday, we all hope to be analysts. • The truth is that those analysts work for large companies with large stakes in certain stocks. They must give those stocks good recommendations to maintain the stock price.

  6. PROOF? • AGENCY.COM (ACOM, NASDAQ) • Avg. Analyst Recommendation - (1.5) or STRONG BUY • Stocks Performance in the Last Year:

  7. PROOF? • BE FREE INC (BFRE, NASDAQ) • Avg. Analyst Recommendation - (1.5) or STRONG BUY • Stocks Performance in the Last Year:

  8. INVESTMENT PHILOSOPHIES • Investment Philosophies Differ, but you should always research any stock before buying it. • My Investment Philosophy: • I will only invest in clear leaders in an industry. I believe that there is no such thing as an overvalued stock of a company that is at the top of an industry. I like to pick up tomorrow’s leaders today when they are still small and when the opportunity for growth is still large. I am against investors who look for cheap stocks in a certain industry because that industry has good growth outlook. And as you have figured out, I do not listen to ANALYST RECOMMENDATIONS ANYMORE!

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