Join our investing community

Pharmaxis PXS ...?

Discussion in 'Shares' started by Compleks, 4th Dec, 2009.

  1. Compleks

    Compleks Well-Known Member

    Joined:
    18th May, 2007
    Posts:
    348
    Location:
    Melbourne
    Hey guys.

    My friend has been recommending these shares for a while now. Apparently his broker (someone with Wilson HTM Group I believe) has told him they plan to reach $22 within the next 4 years.
    Currently they are selling just below the $3 mark.

    I was wondering if anyone here has any opinions on this company and if you would recommend buying?
     
  2. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    Hey guys.

    My friend has been recommending these shares for a while now. Apparently his broker (someone with Wilson HTM Group I believe) has told him they plan to reach $22 within the next 4 years.
    Currently they are selling just below the $3 mark.


    Is the above broker's recommendation/prediction based on the discovery of The Expending Universe? :confused:

    A stockbroker is a commission salesman and his income depends not on whether you make a profit on your investment but whether he can get you to buy and sell as many times as possible...
    In any broking house are two group of people...the researchers who do the research and dealers who do the selling.

    Each broking house basically begins its day with a research meeting. It is here that the movements in markets overnight are analysed (rather polite term since most brokers sit there asking why Dow did what it did ), and recommendations are put forward.
    So researcher's job is to provide the dealers with a script that they can follow when they ring their clients.
    That is the first step when recommendations are generated. The second step is rather simple...brokers read the financial press and if they find a catchy headline they will read it back to their client.

    Basically... brokers' recommendations are as good as taxi drivers' tips.:rolleyes:
     
  3. Compleks

    Compleks Well-Known Member

    Joined:
    18th May, 2007
    Posts:
    348
    Location:
    Melbourne
    Haha, fair enough.

    I'm not generally the kind of person to follow these recommendations. I've recently sorted out my managed fund portfolio, and have been thinking about using a spare $5000 to invest in something different.
    I understand that brokers work on commission, which is why I thought it was odd that he was talking about 4 year predictions. Anyway, I'm not really interested in 'trading', as I prefer more of a long term 'buy and hold' approach I guess.

    I realise this whole thing is as trivial as getting a 'hot tip' on the races. But I'm curious to know what you guys think of the actual company/share?
     
  4. Young Gun

    Young Gun Guest

    I'd tend to disagree strongly on that point. A taxi driver doesn't have a team of highly specialised analysts working behind the scene to crunch the numbers and generate trading opportunities.

    A good broker will use his own judgement and recommend only those trades he thinks have the greatest potential. They may have to be a little overly optimistic on the stock to get you to invest into, but if they went through all the risks, best case and worse case scenarios no one would ever invest in anything!

    A broker does work on commission and its in his best interest to get you to buy and sell as many times as possible. but without delivering good returns many clients will walk away. so its in his best interest to only give you what he believes to be the best idea's.

    I'd prefer to use a broker from a smaller house as they generally have more flexibility to recommend their own idea's and not be forced to tow the company line.

    oh if you want a view on PXS, sign up to HotCopper - Australian Stock Market (ASX) Forum, you'll be get very bi-polar views on many spec stocks there. but I'd take each view a large grain of salt.
     
  5. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,394
    Location:
    NSW
    You do have a right to agree or disagree on anything.
    History is telling me/us how good brokers are in crunching numbers when they recommended to buy HIH, ABS Learning (on the way down), Telstra around $7/share etc...
    If broker delivers a good return to a client it is more a coincidence and/or good luck more than anything else.
    Personally in the past I lost enough money thanks to those "number crunchers" :mad: so I classify them on the same level as taxi drivers without a driving license.
    By the way...are you associated in some way with a stockbrokers? :eek:

    Oh yes...I don't need anybody's view on PXS or any other shares. Chart is telling me all I need to know. :cool:
     
  6. voigtstr

    voigtstr Well-Known Member

    Joined:
    24th Jan, 2007
    Posts:
    679
    Location:
    Hobart
    Two ideas here, and they may be complimentary.
    One: look at the fundamentals of the company. Form a view as to whether they are well managed or not, if they are trading at a premium or a discount, if long term they are likely to be growing etc.

    Two: look at the chart. Is there a trend? is there a buy signal of any type? Is the chart screaming out buy me, sell me, or stay tuned for details..

    To some extent you have the luxury of time to analyse this stock to death. Someone trading it for their day job might not get to allocate as much time...
     
  7. voigtstr

    voigtstr Well-Known Member

    Joined:
    24th Jan, 2007
    Posts:
    679
    Location:
    Hobart
    heres's a chart... Sure theres a big spike, but is it now going to go up or down or drive sideways again like it has since May. If spiking high and then dipping is your buy signal then knock yourself out, otherwise it mya be more prudent to sit back and see if a trend developes. (if you want to take a long term fundamental view, then some may argue the chart is irrelevant). From the chart, the tip has already been acted upon with a large volume of trade.
     

    Attached Files: