Can I ask you what you think of the [Merrill] research on NITE and the research in general?
Bob,
I've only recently moved to Merrill (for almost 2 months now), so my opinion of Merrill's research is still forming.
As regards NITE, I was told by my f.c. that the analyst on this stock was conservative, and indeed he underestimated earnings for 2Q99. Also, his recent DCF modeling of NITE, which allowed him to bring his price target down to 60, was very cautious. The high degree of caution is, interestingly enough, at odds with his analysis of ECN competition. That analysis quite convincingly establishes that the ECN threat is overblown.
As regards other stocks, at least those I've looked up, I've found Merrill's research to be very much to the point, generally conservative and (not unimportantly) always readily understandable.
I rely most on the earnings estimates (particularly looking for increases in those estimates) and on the core information within the analysis. I tend to discount the price targets. Recently, I was convinced by Merrill's analysis to buy Guidant (GDT) at 50, and in fact that stock has performed well, even during the recent market pullback. All in all, I very much like the research reports.
Hope this answers your question,
Best,
Gary Korn |
