Jailing 'negative' analysts - Amazing

[JJsushi]

Who cares? Stock analysts have about as much integrity as lawyers in my book. Jail them all. If they can't substantiate their opiions with some sort of fundamentsl research or analysis, then toss them into jail.

 

Shining example was the infamous Jack Grubman form Salomon Brothers/Citigroup. The biggest telecom analyst in his day. CEO's would consult him before doing deals. Sold out his integrity to make millions and get his kids into an exclusive pre-school. I actually talked with the guy a few times years ago before he became a hotshot analyst.

[jxxxl]

Excellent point. The recent analyst scandles in the US were based on basless and conflicting positive reviews rather than negative.

 

Anyone following this story, please post any follow-on stories. I think institutional investors outside Thailand will certainly react negatively to this.

 

I'd be selling if I was ever stupid enough to invest in the Thai market.

[harlequinbkk]

[color:"red"] If they can't substantiate their opiions with some sort of fundamentsl research or analysis, then toss them into jail. [/color]

 

took a bath in red ink on a stock tip, have we?

 

Unfortunately, there is a small snag in your plan:

 

Amendment I

 

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.

[JJsushi]

harlequinbkk said:

[color:"red"] If they can't substantiate their opiions with some sort of fundamentsl research or analysis, then toss them into jail. [/color]

 

took a bath in red ink on a stock tip, have we?

 

Well look who is back!! I sort of missed you dude. Been quiet in here without your banter.

 

No baths for me on stock tips. I only invest what I can afford to lose. I am also a Fixed Income guy, so I have no faith in stock analysts reports. I follow bond analysts because they really can't afford to fudge the numbers regarding a corporations financial health.

 

 

Unfortunately, there is a small snag in your plan:

 

Amendment I

 

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.

 

That document needs to be rewritten. Hopefully George Bush will see to that.

[harlequinbkk]

[color:"red"]That document needs to be rewritten. Hopefully George Bush will see to that [/color]

 

Um, you really should put down the business pages once in a while and read the front page of your newspaper. Mr. Bush is rewriting that document. What do you thing the Patriot Act is about?

 

But getting back on topic, it's a little alarming, really, to see this erosion of personal freedom. It get chipped away bit by bit. The Thai govenment muzzles financial analysts, The US government makes it easier for the cops to have a peek at your data. Its a slippery slope.

[Paillote]

Lord Toad said:

The frightening thing is they actually think this will help!!

The first question I would ask is what are they frightened of?

I think a sell Thai stocks recommendation is likely

 

This reaction was fueled by a specific brokerhouse that presented pure rumours as hard facts in one specific case. This led to a big slide in bank sector which again unfortunatly sets the sentiment for the entire SET. More than for most (any?) exchanges, the SET are higly volataile driven by rumours and sentiment rather than fundamentals. Anything that could be done to change this is highly welcome, and penalizing rumour spreaders are a good start. Right now the SET is pure gambling for those outside the inside circles of rumours. Suddenly stocks starts to move in a direction, and you have no idea why.

 

I find the volatility nervevrecking, and after the last four weeks terrible nosedive (we are talking one to two percent loss every day!!!) I just about had enough. I will probably never invest in it again. I just can't take it. You can not invest in the SET, only trade...

 

Then again I find the ridicule going on in this thread as extremly sour porly founded generalisation. Spreading false rumours can be penalized anywhere, it depend on how the rumours were spread. And unfounded positive rumours damage just as much, and thus is just as illegal.

 

Paillote

[Guest]

You are right. The problem is the chilling affect of possible jail time if the government - controlled by people have profited mightily from a stock market boom - decides that your report is wrong.

 

The flaw in all of this is the idea that a government can legitmately and objectively evaluate the "factual" basis of any analysis, particularly the Thai government. No developed and open economy I can think of uses this type of standard to regulate stock markets.

 

Instead, they look at conflicts of interests, insider trading and failures to make disclosures. Jailing analysts simply because the government doesn't like what they are saying is not going to make Thailand an attractive destination for investment.

[JJsushi]

Gadfly1 said: Jailing analysts simply because the government doesn't like what they are saying is not going to make Thailand an attractive destination for investment.

 

And yet the money still flows into the country.

[bibblies]

Something about a fool and his money...

[jxxxl]

jjsushi said:

Gadfly1 said: Jailing analysts simply because the government doesn't like what they are saying is not going to make Thailand an attractive destination for investment.

 

And yet the money still flows into the country.

 

You may have some data on this, but the sell off of the SET suggests that money is NOT flowing into the Thai capital markets. Direct foreign investment may be strong, but Thailands capital markets will be fucked if policies like the one we're talking about continue. It doesn't take much to trigger a massive sell off in Thailand e.g., 1997.