Speculating on valuation
Purchase recommendations are one of the key items of investing on the stock market. Of course they should not be treated as dead certs but long term decisions not suitable to short term speculators. Recently this has been highlighted with recommendations to buy IT stock which continues to suffer after the dot com disaster of last year. One IT company, Softbank, was recently the subject of buy recommendations. No sooner had this happened than the company drastically reduced profits forecasts thus causing the price to collapse further. Thus the recommendation seemed to be wrong. Of course long term we do not know yet what will happen.