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A word about posting price targets

Tanaka

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Does this also apply to shorting targets? i.e "ELD will be worth .03 cents by the end of the year?" :p:
 

Joe Blow

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Does this also apply to shorting targets? i.e "ELD will be worth .03 cents by the end of the year?" :p:

Yes, all price targets must be accompanied by analysis or at the very least detailed reasons for your point of view. A price target is essentially placing a future valuation on a company and others should be entitled to review, and perhaps critique, your reasoning/analysis.
 
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Just wondering where we stand when I put up charts such as the one below, ie, a software generated set of conditions and projected targets.

Is this ok with minimal explanation (is it self explanatory).

Thanks Joe
.
 

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Joe Blow

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Just wondering where we stand when I put up charts such as the one below, ie, a software generated set of conditions and projected targets.

Is this ok with minimal explanation (is it self explanatory).

Hi Boggo,

Yes, that's fine. It's fairly self explanatory.

The only reason I insist on some kind of analysis is to keep a lid on blatant ramping/downramping. I don't mind whether the analysis is TA or FA, or a combination of the two, as long as it explains how the price target was arrived at.
 

Joe Blow

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Recently I have noticed a proliferation of random price targets being posted in stock threads without any attempt at justification.

I want to make this very clear: If you post a price target you must explain your reasons for arriving at that price target, otherwise it's just ramping. Is it a technical target or a valuation based on fundamentals? If it's based on technical analysis then a chart would seem to be almost mandatory as well as an explanation of your TA. If it's a valuation based on fundamentals then it goes without saying that you will need to explain how you came to arrive at that valuation. If you take the view that announcements will drive a particular company's share price then you need to also post what news is expected and why you are anticipating a particular outcome.

I realise that there is quite a bit of no/low content ramping on many of the other stock market forums, which makes it difficult for us to raise the bar, but we do try and maintain a higher standard of posting here. You must back up all your assertions with an explanation or analysis, particularly price targets. Failure to do so may result in your post being removed and an infraction issued.

We also ask that ASF members report posts in stock threads that they believe qualify as no/low content ramping. Although the moderators and I do our best to review as many posts as we can, it just isn't possible for us to get through them all. The assistance of ASF members in helping us to identify posts that are in violation of the site rules is greatly appreciated.
 

Joe Blow

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Just a brief reminder about posting price targets:

If you are posting a technical target (either bullish or bearish) please include a chart that illustrates your analysis. If, for some reason, you are unable to post a chart, please describe your analysis in some detail, being sure to identify any relevant support or resistance levels.

If you are posting a price target based on a fundamental valuation, please be sure to describe in some detail how you came to arrive at that particular valuation.

The more content you post, the more useful your post will be to others.
 
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I have noticed some members posting price targets for stocks that are anywhere from ten to twenty times the current trading price of the stock and I am increasingly becoming uncomfortable with this practice. In my view without anything substantive to back it up with these kind of predictions are simply a form of ramping. If you are going to give a price target for a stock that is significantly above its current trading price I expect you to back it with some fairly comprehensive analysis or else I would prefer you not to do it.

Lets not let this sort of thing get out of hand.
it depends how you take the analysis and how much you wanna risk along with the source you rely on
either you can trust yourself and your knowledge
 

Joe Blow

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it depends how you take the analysis and how much you wanna risk along with the source you rely on
either you can trust yourself and your knowledge

A price target is effectively a valuation. By multiplying that price by the shares on issue you arrive at a particular market capitalisation. I have no problem with anyone doing this, but they must also provide the analysis that their speculative valuation is based on. Then others can assess the reasoning and the assumptions behind the valuation and comment on, or critique, it.
 
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