Matt Cutts has given answers to many questions that were asked in Google Moderator “Grab Bag Questions”.
One of the questions that were asked was about whether anchor text carries through 301 redirects to the redirected site and whether too many redirects will cause any problems or not.
Matt Cutts told in a video answer that, anchor text does carry through 301 redirect. But not all 301 redirects will pass anchor text juice. Google uses different techniques to determine whether anchor text should carry or not.
Actually I did not fully understand the question and the answer too.
Matt Cutts stated that, doing too many such redirects can raise suspicion. Too many redirects should be avoided and it will not bring any good in terms of ranking or PR.
