Wednesday, September 28, 2011

Anonymous takes aim at the cozy world of investment analysis - QFINANCE

Chaoda | Anonymous takes aim at the cozy world of investment analysis - QFINANCE:

"Why does anyone rely on ‘sellside’ research? The investment analysts who produce it, for free, tend to work for investment banks that also have some very big ticket services to sell, such as the underwriting of IPOs, to the very companies whose performance they are supposed to be evaluating"

and now someone (uh who will remain nameless) is trying to do something about it (you can argue about their methods)

Q finance profiles one such report with Chaoda which can be downloaded here:
"Anonymous, the 'hacktivist' collective, has branched out into investment research with the launch of Anonymous Analytics. They have kicked off with a truly stunning research note on Chaoda Modern Agriculture.

Chaoda, which has been listed on the Hong Kong stock exchange since 2000, has a market capitalization of $460m and is one of dozens of Chinese companies that have been accused of fraud in recent months."

Pretty excited about this actually. Yes it has potential to be worthless (or worse) if people make things up, but also could help prevent problems of lack of transparency and misaligned incentives.

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