Rande, an update-Merrill's Blodget is wrong, but rich>
There's probably no other Wall Street analyst still in the business that's been as wrong about tech stocks as Henry Blodget. cbs.marketwatch.com
But no matter how many poor stock calls he makes or the barrage of bad publicity he faces, Merrill Lynch's Internet researcher continues to draw new followers, maintain his guru status, and keep his job at the nation's largest brokerage.
Blodget made a name for himself two years ago behind stocks including Pets.com, Buy.com, and Webvan - the once-soaring investments that now are either defunct or trading for pennies. He made embarrassingly bad calls in 1999 and 2000, and he continued to trumpet companies after they had lost most of their value.
In actions that should be investigated by the Securities and Exchange Commission, Blodget hyped companies with no earnings to hundred-million-dollar market caps, then dropped his ratings after investors lost a bundle on his advice.
What's infuriating about people losing their shirts to the euphoria Blodget fueled is that Merrill potentially cashed in. The brokerage took Pets.com, Buy.com and other companies public, retaining many shares as payment as Blodget hyped their stock values.
Where's Arthur Levitt when you need him?
Today, most of his Blodget's stock picks are down about 75 percent from their highs. One investor, New York's Debases Kanjilal, is out thousands of dollars, and he's hoping to recover his money in court.
Today, Blodget continues to ride high. A day after "The New York Times" derided his recent investment track record in a front-page feature, the newspaper felt it was fit to print four wire stories from its Web page the very next day that quote Blodget's market and stock advice.
Ugh.
The sad story of Henry Blodget, of course, provides lessons for investors: Take care with high-risk investments, perform your own due diligence and carefully weigh advice from gurus.
Another moral to this story: Apply for a job at Merrill. It's where the real fortunes are being made. Ask Blodget, who continues to rake in millions. |
