Thursday, March 17, 2011

Profit Visibility

Today I learned a new (and stupid) concept that analysts use in their analysis: profit visibility.

See for yourself at this article.

My understanding of "invisible" profit: companies whose combination of valuations (by fundamental criterias) and market price offer a good discount, but the analysts say they are not good investments, because they think that the other analysts think there's not so much value.

I think the analysts are trying to predict the future availabily bias...

Well, while everbody is wondering about what everybody else is thinking, I'm receiving a juicy 20% dividend yield on Eletropaulo (ELPL4).

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