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Technology Stocks : Alliance Semiconductor
ALSC 0.8100.0%Jul 10 5:00 PM EST

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To: A. A. LaFountain III who wrote (5190)6/29/1999 12:28:00 PM
From: Charles R  Read Replies (1) of 9582
 
Tad,

<Audience: Needham and Company is entirely institutional>

This explains a lot.

<(if the stock gets 20% above my target, I lower to a Hold - an English term that infers retention - and I use an Avoid at 50% above the target; that's where your question becomes pertinent).>

Here you are distinctly different from a lot of analysts that I know of. English language is one thing and sell-side analysis is something completely different. Even the buy-side guys are suspect in some cases because of the investment banking relationships.

I am reminded of a company that I had significant stake in a while back. The RS analyst who I thought was tops in knowing this company moved from strong buy to buy and stock started drifting lower. So, I had a chat with RS analyst about his position and he said he was telling his institutional clients to get off the boat but didn't want to piss off the CFO of the company. Boy, was I glad I called! Unfortunately, this has become standard modus operandi for a good part of the analyst community.

Chuck
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