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Technology Stocks : WDC/Sandisk Corporation
WDC 160.04+5.2%Nov 5 3:59 PM EST

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To: Road Walker who wrote (18414)1/24/2001 10:03:16 AM
From: Bob Kim  Read Replies (1) of 60323
 
John,

The analysts involved in a stock can't buy it unless it has a positive rating and typically can't sell it unless it doesn't have a positive rating. If someone did a trade that seemed questionable, they would break it if the legal department deemed it necessary. An analyst with an Accumulate rating is usually asked if he/she plans to upgrade the stock. If the answer is yes then they usually can't buy until after the upgrade. Guess what they answer?

Only a limited number of people are supposed to know about ratings changes before they officially occur. That said, Henry Blodget, essentially admitted to breaking that policy, when he told AMZN executives of a pending upgrade ahead of time in the Washington Post story last April.
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