Gary,
I am a Zacks subscriber also and this Zacks strong sell is , IMHO, outdated.
Zacks, like First call, relies on analyst earning estimates. If said estimates are constantly increasing - f.e., if an analyst recommends $1.45 in FY98 earnings on XYZ on 7/31 and $1.51 in FY98 on XYZ on 8/31, Zacks sees that as a buy signal.
I agree, checking BOST earnings estimates in a database such as stocksmart.com indicates that analyst earnings estimates were on the decrease for the past few months. However, this also, I belive is int the past and like
numerous stocks which go thru this pattern. BOST will be accumulated by the MM and brokereage firms, then buy recommendations will come out, rise again, the analysts will increase earnings and then, 4 months after the fact, Zacks will have it as a strong buy.
It has been my experience that a Zacks strong buy/strong sell usually comes out far after a stock has made its move.
Simply put, Zacks is better indicator in a "buy high, sell higher long term" CSCO or DELL scenerio. This strategy does not work for a steriod momentum stock like BOST which fell critically out of favor and has now clearly "bottomed out."
Check out Zacks on stocks like Yahoo and NSCP as an example. Only after the analysts made their earnings revisions did Zacks cahnge its position.
All IMHO
Tbhanks for your response.
Stephen |
