Replies to post #62142 on China Growth Stocks

[derek2000]

CEU and Wall Street Ratings.

Barely a month ago, when CEU was trading around $5.2, Rodman recommended the stock as an "outperform", a buy with a price target of $9.

Today, the stock was trading at half of the price ($2.6) when Rodman came out with an update. I was thinking that Rodman should upgrade the rating to something like "super duper outperform". I was therefore surprised when I learned Rodman withdrew its recommendation, and downgrade the stock to "under review".

So buy high and sell low? It can definitely help you move away from your dream of early retirement.

Coupled with Redchip's LPH report today, I suddenly figured out the secret sauce for Wall Street and Off Street analysts and I am in process of patenting the following discovery:

Stock Rating = xfactor *times* PPS + coin flop. (++)

++: This formula is protected by US and China patent laws.

++2: I am working on an automation software for use by analysts based on this formula. Per popular request, the software can automatically generate reasons for upgrade and downgrade. It pre-populates reports with useful paragraphs such as "I forgot to read the company's 10Q in my last rating", or "I was drunk when I was site visiting and did not notice any empty buildings/empty factories".

+++ The classic excuses such as "dog ate my homework" are included in the software free of charge.