Posted by Johnzhang > 2021-12-11 12:37 | Report Abuse

Let me use glove and plantation sector to support my point. Glove Sector : IBs had been making many buy calls and assigning much higher TP against the prevailing trading prices of glove counters. I take Topglove who is the industry leader for discussion. The TP range by various IBs and rating over the 1 year period are as below: @ Jan 21 TP $6.50 - 10.54 / buy or hold @ Feb 21 TP $7.80 - 10.10 / buy or hold @ Mac 21 TP $4.85 - 8.14 / buy or hold @ Apr 21 TP $4.75 - 7.60 / buy or hold @ May 21 TP $7.60 / buy or hold @ Jun 21 TP $4.45 -7.60 / buy or hold @ Jul 21 TP $3.66 - 6.72 / buy or hold @ Sep 21 TP $2.80 - 5.40 / buy or hold @ Oct 21 TP $2.60 / buy The cruel reality is Topglove share price @ 10/12/21 is $2.16 and remain under pressure in the near term due to further erosion of ASP . Investors who follow the IBs' calls throughout this year are suffering huge losses. How on earth the analysts can be so far behind the curve ? Plantation Sector: IBs have been very skeptical about CPO prospect ever since 2020 when CPO staged strong recovery to $3,000 level. IBs' forecasted CPO price (FP) throughout 2020/2021 have always been very biased, negative and substantially lower than the prevailing market prices. IBs forecasted average CPO price (FP) over the period, their rating and the actual average CPO price (AP)are as below @Dec 20 FP $2,600 for 2021, neutral , AP $3,620 @Mac 21 FP $2,900/$2,700 for 2021/2022 , neutral, AP $4,401 @Jul 21 FP $2,900/$2,700/$2.700 for 2021/2022/2023, neutral, AP$4,128 @Aug 21 FP $3,700/$2,900/2,800 for 2021/2022/2023, neutral, AP $4,555 @Sep 21 FP $3.700/$2,900/$2,800 for 2021/2022/2013, neutral, AP $4,556 @Oct 21 FP $3.700/$2,800 for 2021/2022 , neutral , AP $5,051 CPO @ 9/12/21 was $5,240 . Avg CPO price YTD is about $4,425 You can see that they are also seriously behind the curve, lack of foresight, lack of knowledge and lack of professionalism. Whose interest are the IB have in mind ? Certainly not yours and mine!