There are two reasons not to listen to anything the finance media says. The first is that they have no idea what they are talking about (see earlier piece on gold predictions) The second reason can be found below.
Charles Payne, a contributor and frequent guest host for Fox News and Fox Business, was compensated to promote the stocks of at least three companies since joining Fox. The practice of compensated stock endorsements is currently prohibited by Fox rules, and resulted in the recent contract termination of contributor Tobin Smith.
According to a Media Matters review, Payne was paid $40,000 to promote The Brainy Brands Company, “$25,000 by a third party” to promote NXT Nutritionals Holdings, and an undisclosed amount for a “consulting arrangement” to promote Generex Biotechnology Corporate.
The share prices of the companies Payne was paid to tout are now essentially worthless.
Payne forecasted lofty gains for investors who bought those stocks. He projected in 2011 that Brainy Brands could hit $4.50 a share in three years. At the time of the pitch, Brainy Brands was trading at around $1.35 — it’s now below 1 cent. Payne claimed in 2009 that NXT could “turn $10,000 into $25,000.” At the time, NXT was trading for $2.00 — it’s now below 1/10th of a cent. And Payne claimed in November 2007 that Generex, then at $1.58, was a long term “screaming buy” which could hit $7.00. It’s now trading at roughly 4 cents.
More here at Media Matters