Jon,
You are of course quite welcome to disagree with me. Many fine people have over the course of my life <ggg>
I would submit to you that if the big investors who directly or indirectly hire the analysts in the first place actually traded according to their recommendations, that the analysts would be out of jobs because those big investors would quickly be too broke to pay them. And that would then make me a "big boy."
I'd be happy to have them work for me, and I'd pay them well. But I sure wouldn't listen to them, and in fact I'd tell them what to say, and I would do the opposite. I would tell them to issue upgrades to get a stock I'd just bought moving, then when I'd gotten a nice profit, I'd tell them to issue more upgrades, and gush glowingly about the future of the company. Then, I'd take a short position in the stock, and immediately dump a huge quantity of shares on the market. I'd tell the analysts to keep their mouths shut as the stock sold off in a panic, then after I'd gotten the profit I wanted, I'd cover my short position. Next, I'd tell my analysts to start issuing downgrades, and badmouth the stock incessantly, because I wanted to have another go-round. Once the last of the retailers gave up and sold, I'd buy in with a huge position, causing instant momentum in the stock. If necessary, and only if necessary to keep momentum going, I'd have them issue a few upgrades, but usually greed is sufficient to accomplish this, and most times I could just watch as momentum traders did that work for my analysts, just as the momentum boys did so on the selloff. And so on, and so on.
Then I'd get bigger, and give my analysts raises, and hire more of them (and not talk publicly about their "track record," of course).
But none of this happens, nor is it likely to................Hmmmmmmmm. Wonder why.
But, to each his own. We would both be well-advised to keep open minds, and our eyes and ears wide open.
JMVHO, as always.......................
Walkingshadow |
