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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 97.75-0.3%9:34 AM EST

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To: Knight who wrote (73111)5/17/2001 12:19:46 PM
From: GVTucker  Read Replies (1) of 93625
 
Knight, RE: My intention is not to engage in an argument, I really just want to know the facts, since that's the key to making money here. Unfortunately, investment journalists and analysts' public statements (for the most part anyway), are not a reliable way to ascertain the truth.

That is for the most part correct. Historically, analysts' recommendations have shown to have no correlation to future stock price performance, either positive or negative.

There's one exception, though. When an analyst who works for the underwriter of the company's shares downgrades a stock, there is indeed a correlation. It is probable the stock will not only underperform that market over the next 6, 12, and 24 month, but it will decline on an absolute basis.

Note that the analyst for Rambus' underwriter downgraded the stock a week and a half ago.
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