TheSteet.Com had a recent article about PVD. I opened it, wondering what could be said about a company that has been sold and is essentially a lame duck (3 Buy-Rated Dividend Stocks: NRP, PVD, BPT).
It was total crap. I think anyone buying stocks would be poorly served to rely on some of the "analysis" done on the web (sure that is true for me as well, but at least I am not public, like TSCM).
Here are some excerpts (granted, they do say it is largely computer driven which shows):
"TheStreet Ratings rates Administradora de Fondos de Pensiones-Provi as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid price performance, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
How can it be a "buy" given there is extremely limited upside due to sale?
- Powered by its strong earnings growth of 41.93% and other important driving factors, this stock has surged by 30.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PVD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year."
Please - this is scary that they would write this.
"AFP PROVIDA SA has improved earnings per share by 41.9% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, AFP PROVIDA SA reported lower earnings of $6.87 versus $8.97 in the prior year."
I do not think it will be difficult to predict their earnings for the next year...
Then the coup de grace:
"You can view the full Administradora de Fondos de Pensiones-Provi Ratings Report."
They actually have the gall to try to sell you this pile of crap. As you can see, this has me pretty fired up.