Agree there are problems in the broking industry, not sure Fosters report on LAA is the best example. I harbour concerns over the “one off “ Research Report. When a broker normally covers a stock you might expect them to continue coverage until takeover, administration or certain market caps are no longer met etc. Sure, a broker report may be prepared as part of a pitch, but if the broker immediately ceases coverage having failed to win a mandate then it is not a good look and clients should be concerned. I have noted a number of microcaps where research reports state on the disclaimer that there is no obligation for a follow up report. Be wary of such reports. Such reports could validate the pump and dump theory of the cynics. Fosters is not the only broker that has issued reports on LAA. Let’s see if others now cease coverage.
LAA Price at posting:
23.0¢ Sentiment: None Disclosure: Not Held
