Thursday, December 15, 2005

A lil' note to investors

If you are an investor and are planning to invest in a company, you probably ask your stock broker for research reports on that company. However, it is pertinent that you actually read the report and not just the recommendation. At any given point of time, there will be analysts with contrary views on a company. So, in order to assign weights to analyst recommendations, it is extremely important to read the full report. Reading at least five reports by different analysts should cover most of the developments in a company. You must also exercise caution when an analyst changes his outlook on a company in a short span of time. In such cases have a look at his previous report and judge for yourself if the reasons cited in the new report justify the change in rating.

Hope this helps some investor.....


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