1) Get a hold of a copy of this week’s Mining Journal (MJ)
2) Go to page 30 and the regular column, View From The West End
3) It includes this:
“Analysts do not in general analyse, or at least not properly.“If one were true to the science, analysis would involve the collection of data, some crunching and then a bit of a think to come up with the most likely outcome – in theory. But alas, theory is not of much use in the markets. With continuous disclosure, detailed company guidance and a 24/7 wired world, there is blessed little that an analyst can actually say that any fund manager with half a brain doesn’t already know, other than by accident. Research then tends to fall into two camps:
Research on junior miners, which is really little more than advertising put out by the supporting broker with a vested interest in pumping up the latest bit of tripe they just floated.“Research on major miners, which is really little more than different ways of presenting what the company has already announced, and never veers more than a few bips from consensus lest the company get annoyed and cut the broker off from the boozy site visits.”
The whole thing is worth reading, but that is so exactly right.