Richard, I just added to my Tusk position today. I think the fundamentals are somewhat compelling.
To answer your question, any time a firm, such as Brant, that handles a financing for a company and then brings out a recommendation on that same company, I have to question the objectivity of the analysis. My family owns more companies than is prudent unless you are a money manager, and I just added Tusk!!! Several of our stocks have had very positive research reports issued by companies that have raised financing for them. Generally, the 'connected' analysts's reports are far more optimistic that the consensus of other analysts. This tendency is much more pronounced, in my experience, with micro-cap and small-cap companies.
The 'Buy Low-Sell High' analysis of Tusk gives me a great deal of confidence. In my experience, Grant Robertson is very objective and independent in his analysis.
I hope that clarifies my caution about 'connected' analysts' reports.
Regards, Ed |
