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Monday, August 2, 2010

Why PEGGY Method if we have Analyst?

PEGGY method depends on someone else's analysis of the market situation. In that case, why need PEGGY? Maybe just follow the analyst's buy/sell call, no need to even do the PEGGY.

Analysts recommended so many counters, which one to buy? Good stocks, average stocks also recommended Buy.
Some analysts ask to SELL SIME DARBY, some ask to BUY SIME DARBY, which one to follow?
So, use PEGGY to select the better stocks.

Analysts have their own agendas, use regional PE, recommended buy even if PE ratio is sky high.
By using PEGGY, you can avoid this.

Analyst prefer large cap stock, because to cater for Fund Manager.
We are not fund manager.

6 comments:

  1. thank you for replying my post. ok, not all nalyst are correct otherwise they will be much richer than us. but why use the analyst forecast if you know it is not dependable? and then if it screws up the peggy, we say 'oh, it's the analyst mistake"? You are using a 'variable' here that someone else gave you, so the effectiveness of PEGGY depends largely on what another person prediction, like the growth rate etc etc.

    ReplyDelete
  2. We are not analyst, so we have to depend on them for future figure. But because the research report serve so many purposes, so we have to do filter ourselve. Please read my post on BUY BURSA RM15 on 03Aug2010. Then maybe we got better understanding.

    ReplyDelete
  3. How about the SAAG?

    ReplyDelete
  4. I fell heart bleeding after i sold my DRB-Hicom at RM1.32, currently it having a superb rally..
    cos it is in low PE(around 7.X) and good profit annually..

    Currently i found another stock with same criteria..it is BERNAS?
    Any comment on this stock, Polite Market?

    ReplyDelete
  5. no info on Bernas. Wah... DRB today 2++

    ReplyDelete

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