Not sure if Wachovia has ever had a relationship with JDSU but if they do, they're doing exactly as JDSU is paying them to do. The "client" isn't us. I wouldn't say they're morons.
George Hunt from Wachovia follows JDS, at least according to co. FAQs.
I think what's surprising is how much impact analyst upgrades and downgrades have on stocks even though investors know their timing is suspect. I know it's not CNBC's responsibility to qualify each person quoted, but it certainly would help to have a little background on the analyst making the call. Take Paul Sagawa for example. First, he's a buy-side analyst, not sell-side. Second, he's been in Lucent's pocket for eons, if not in fact then certainly in spirit. When he's quoted, it would help if a reporter made some mention of his bias. (I know, "Girl, that ain't gonna happen. . .") Going further back, Sagawa was an Ascend fanatic and when LU took them out, his career peaked. Unfortunately the entire ship's been sinking ever since.
As investors we go over the same ground repeatedly. So why don't we just wake up and ignore analysts in terms of timing and just use their numbers which are often excellent? With the new SEC regulations we know companies can't talk to analysts in between conference calls, so eventually we have to get it through our thick skulls that they're basing their information on rumor, not management guidance.
When all the Capex spending flak hit the news, folks on this thread tried to sort out the facts and eventually realized those being quoted, again, Sagawa among them, weren't distinguishing between old voice networks and next generation fiber optics. Where one was slowing, the other was picking up. Now for a company like JDSU that sells only into the fiber optics sector, this is a huge distinction.
But I'm preaching to the choir, I know.
I just get really *&^%$#@-ed when analysts and those quoting them treat us like we're brain-dead.
Pat
AKA Mme. Defarge :) |
