Thursday, April 12, 2012

Peter Hodson and 5I Research

Click Here To Play The Video
Interesting story how a former analyst and fund manager felt enough of a conflict of interest to start his own rating company.  He doesn't give Buy, Sell, Hold ratings since they are used to mislead investors.  Instead 5I Research uses a grade of A, B, C... etc..

In  his company, employees are not allowed to trade the stocks of Canadian companies since that is what they provide ratings for.  He also talks about how management of the companies he would meet with while working as a fund manager would always be giving him a sales pitch instead of being objective.  Compare Hodson's   approach to the major rating agencies that are paid by the firms that they do the ratings of and for.

Clearly, the major rating agencies contributed to the problems leading to the Great Recession.  I have said that I believe the ratings system is broken.  I guess it isn't just me who thinks so.

8 comments:

  1. hodson's a disgrqce for the4 hatchet job he pulled on orbite today...everything he said in his article was demonstably false where orbite was concerned...what is hodson's agenda?

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  2. hodson's a disgrace for the hatchet job he pulled on orbite today...everything he said in his article was demonstrably false where orbite was concerned...what is hodson's agenda?

    a) orbite IS scaling up right now with the lauch of their state of the art HPA facility. b)Orbite talks about its business and plans and not exclusively about the market size/space they are in...and if he understood the dynamics surrounding the recent flash crash, he's know that cibc and a few others are abusing this stock with illegal means for nefarious purposes....orbite is doing wonderful things with rusal and veolia, 2 of the worlds largest companies in theie field and hodson knows it....his article today was in my humble opinion, a strategic hatchet job....why did he do it? im not at all sure.

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  3. Please see the quote from Peter Hodson on his latest

    "Orbite’s shares were cease-traded for six weeks early last year while regulators questioned its preliminary economic assessment technical report. Last week, its stock was subject to a very harsh flash crash that prompted a nothing-to-report press release.

    Did he even bother to write about the results of that Cease trade or did he even bother to verify who started that fat finger flash crash..maybe if he would have checked as he should have, he would have found out it was caused by CIBC with a dump of over 200k shares at market in 43 seconds.
    You call that what ?? Great analysis or reporting whatever name he wants to put on it.
    Very so incomplete and biased that any dimwit who had any sense would pick up with a minimum of DD

    Sincerely but not very impressed

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  4. BTW
    what do you expect from BNN..How is it that there are absolutley no comments about the investigation that is taking place by IIROC and the AMF to find out the very particulars on who was responsible for that 43 second crash to a low of 1.33 satrted at 9:36:54. No mention of the CORE trading engine that was touted to be able to stop those kinds of so called "FAT FINGER" syndromes..But hey we all know who gives BNN their marching orders. Baystreet puppets is what I think do not ever bite the hand that feeds you even in the name of transparency.

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    Replies
    1. Everybody has their own agenda, but that does not have to make us victims. I believe we are all masters of our own destiny, especially when it comes to the stock market.

      Delete
  5. Hey as a retail investor we're not always right, but as a professional Hodson isn't always right either:

    AAA.t at 1.91...............................now 0.49

    GWG.x at 0.77...............................now 0.25

    INT.x at 1.67..................................now 0.13

    And Timminco should still "give him nightmares", Sprott lost an absolute packet on that one.

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  6. Mr.Hodson, you must be thinking that Alouette! Rusal! Veolia! are Idiots; complete fools to be in partnership with Orbite (T.ORT). Yes, something strange happened at 09:36 on Valentine day 2013 (Fat Finger trade?). That same something also happened in 2012. But this Time, it triggered an Investigation. Makes us wonder Who's so scared of Orbite's Potential. Who's behind all this ORT S.P. manipulation and why ?

    I understand that you're trying to give good advices to investors in sharing your Timminco experience and in giving them key hints on the BEWARE Factors, but Please, Before Trowing Corp Names as a current example, Take the time to do your DD.

    Yes, ORT is in an early stage and therefore a riskier investment. But your comments on T.ORT in the Fin Post arn't Fair Play.
    http://business.financialpost.com/2013/02/22/how-to-avoid-getting-burnt-by-hot-stocks/


    Let me help here. ORT is Scalling Up and doing it properly... step by step.

    Go to http://www.orbitealuminae.com/en/
    Consult all the press release
    Contact Investment relation if you have questions
    Contact the analyst covering ORT (Gowin, Moreno & Shen)
    Take the time to analyse what is really going on with the S.P. for the past 18 months

    Happy Investing
    Louys

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  7. Sorry I have been away, and because of that I have not been available to participate in the discussion on my own blog!

    First, I have read Mr. Hodson's article in the Financial Post (http://business.financialpost.com/2013/02/22/how-to-avoid-getting-burnt-by-hot-stocks/) and am surprised by the reaction. The way I read the article, he is saying Orbite Aluminae Inc. may still have what it takes to reward investors in a big way. Some people clearly don't trust what he has to say, judging by the comments his article received. To me, this is a great reminder that any advice, is simply that, nothing more, nothing less. Everyone has to do their own due diligence, and not accept the opinion of others without doing their own homework. Ratings are subjective. There are always opposing views in the market - that is how and why the market works.

    ReplyDelete

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