Whishy
Be careful about bringing sharemarket analysts into this equation also ! Not many would give you an independent analysis. Most of the Gunn’s analysts work for the big investment banks, and most of these are chasing corporate business. Look at the Blockbuster “BUY” report “Not letting the facts get in the way of a good story” released by Credit Suisse just a short time before the Gunns share placement..I think around a shareprice of A$2.20-2.50. Not only did they dispense some poor Tasmanian tourism advice (no need to go to the Tamar Valley and suggest tourists only stick to the Cataract Gorge, Cradle Mountain and Bay of Fires) but some very poor investment advice. Why ? They were negotiating a significant multi million dollar investment banking fee for the impending shareplacement (done by CS at A$1.60). In fact, CS have been telling punters to BUY the stock from the tippy top. And they arent the only ones ! Shadforths, a local broker who you would expect to have numerous clients in the stock and therefore an obvious conflict of interest, are always giving glowing accounts also. Funny that. Funny that the ABC have never asked them this basic question ? Even those recommending the stock as a SELL are doing so for profit, often taking a contrarian line and deliberately “making a market” so to speak.
Im in no way defending Robert Eastment. Its a fine line but like any analyst, his credibility will live and die by his “public statements” and advice, and as you point out his track record lately is not good ! The ABC and co should be watching. Read more, Comment here
