Forget the teenage scribblers. Bring on the loutish analysts. Frustration with the City’s attitude to engineering stocks boiled over this week with the Scottish Engineering chief slating the ‘loutish analysts’ who, he said, would not recognise a great company if it fell on their heads.
We can’t vouch for their loutishness. But read any analysts’ report about the engineering sector and what you usually find is an illuminating exercise in sorting the wheat from the chaff. Sure, the stocks as a whole are down, but rather than following the herd, most analysts tend to be the first to pick out the promising firms which look cheap because of the general market sentiment and tip them for success.
Engineering stocks are downgraded because of the high pound, among other factors. And let’s not forget who’s to blame for that.