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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 244.87-1.7%3:48 PM EST
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To: Bob Kim who wrote (103668)5/19/2000 5:14:00 PM
From: Sam Citron   of 164684
 
Bob,

I do not think that "asymmetric dissemination" is kosher though I do agree it is standard practice. It is standard practice because the SEC is doing little more than paying lip service to the concept of the level playing field and the integrity of the market.

I believe you may have misinterpreted my earlier remarks. I merely suggested that Henry Blodget did not deserve to be flogged for having the courage or naivete to allow us to gaze at this unseemly side of the sell-side analysis business. Henry is merely an agent who is acting according to the rules and norms of his principal, Merrill Lynch. If Merrill Lynch truly has rules forbidding analysts to advise certain clients of recommendations before other clients, he seems blissfully unaware of them. There is nothing to suggest that these so-called rules, which seem to have no consequences for those who break them, are little more than a convenient means for the employer to attempt to insulate itself from potential liability caused by the predictable overzealousness of the employee.

In any case, the more important issue is not the asymmetry between the disclosure to favored institutional clients versus ordinary clients of Merrill Lynch, but rather the prior disclosure of the revenue projection in a private telephone conversation between the company and the favored analyst, instead of via a public release such as a press release and public conference call.
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