You guys will have a hard time believing, but it's true!
A few posts ago, someone said here that analysts don't know anything. I was going through some old magazines today, and I came across an issue of Worth Magazine (April 1996, p. 62). On page 62, two respected analysts give their list of stocks to consider, and stocks to avoid. I will list the stocks to consider and the analyst's suggested buying price, then a slash, followed by today's prices of these stocks, exactly one year later:
Stocks to Buy:
Adobe ADBE 40/41
Alza AZA 33/28
Analog ADI 35/23
Expert XPRT 15/2 (not a typo)
Maxim MXIM 45/48
Nt'l Data NDC 35/37
Omnipoint OMPT 25/11
Platinum PLAT 15/12
Vodafone VOD 40/44
Xilinx XLNX 45/49
The person who recommended these runs a 2.3 BILLION dollar fund. 5 were minor or moderate winners, 2 were moderate losers, and 3 were major losers. Is this startling or not? If you think not, look below for the Analyst who gave the 10 Stocks to Avoid (the price they analyst thought was "fair value" is followed by a slash, then the current price, one year later):
Cellular Technical CTSC 18/10
Chantal CHTL 2/1
Cyrix CYRX 17/19
Electronic Arts ERTS 18/26
Kopin KOPN 9/14
Panda Project PNDA 10/7
Pixar PIXR 16/19
Secure Computing SCUR 16/5
Sofamor SDG 22/38
3DO THDO 5/3
So, out of 10 "stocks to avoid," quite a few have done extremely well!
Pretty revealing demonstration, isn't it?
Skye |
