Every Stock Was a Buy to This Analyst Team, Then Shares Tanked
- Emperor Securities touted 173 companies’ shares in past year
- Hong Kong broker forecast big gains as its trading fees soared
A stockbroker looks at stock information on a computer screen at a securities brokerage in Hong Kong, China, on Friday, Jan. 15, 2016. Asian stocks sank to a three-year low as oil fell back below $31 a barrel.
Photographer: Justin Chin/BloombergCompanies probably love getting attention from analysts at Emperor Securities Ltd. in Hong Kong. Investors who followed their advice for the past year, not so much.
The unit of Emperor Capital Group Ltd. issued buy recommendations on every one of the 173 companies it reported covering from April 2015 through May 16. Its target prices, which the company says forecast trading levels within weeks, predicted gains of 25 percent on average. They are frequently the most bullish among analysts who cover the same stocks and list their calls with Bloomberg, including those based on the standard 12-month horizon.