A reminder of SBM V Goldman’s and why you should never, ever, ever listen to the vampire squid’s advice

Update – 16 Jan 2013. Recommendation by GS at a price of 280p. Current price 350p. Another win for SBM!

From end Dec – For Bulls of ENRC – the best Xmas we could wish for – Goldman Sachs downgrades Eurasian Natural Resources to neutral from buy. 

SBM 1 Squid 0

“Since adding the stock to the Goldman buy list on June 20 2011, the share price has fallen 62% vs the MSCI EM EMEA, down 8%. Goldman attributes the decline to concerns over debt covenants and expects the stock may trade sideways until the market regains confidence in ENRC’s execution and capital allocation decisions, particularly cash returns to shareholders. Also, says ENRC’s strong industry positions in iron ore and ferrochrome are offset by the company’s significant investment in non-core base metals operations in riskier geographies vs its legacy assets. Lowers target to 292p from 398p.”

Why on earth are these “anal”-ysts paid a penny to tell us what the “market” has already priced in and, per the greed-fear pendulum that always swings to extremes, and some..? From my days in fund management, it never ceases to amaze me still at the simply banal and glaringly obvious bleatings of these overpaid buffoons.

Sp, SBM V Goldmans now (on top of SBM v Soc Gen on Lonmin – look how that’s playing out now…). Thanks for the gift Squid! It is actually shocking that a Sell recommendation by Goldman’s is now deemed to be a Buy by those in the know. Quite why anyone would listen to them given that they have presided over a 62% capital destruction for their followers since calling ENRC a Buy is utterly beyond me…

ENRC HAVE RISEN OVER 20% SINCE THEN… Ii is another of life’s mysteries to me how they have any clients…