Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Anthony@Pacific who wrote (75321)	3/19/2002 10:03:38 AM
From: Kevin Podsiadlik	Read Replies (3) of 122087

One of your favorite columnists on one of your favorite analysts: Sometimes I don't know if I am reading the comics or the business section. Take this morning's article in The Wall Street Journal about the imminent demise of Metromedia Fiber. The article quotes Vik Grover, a "telecommunications analyst" -- quotes are mine -- saying "I'm just flabbergasted at this. How did the train fall this much off the track?" The article says that the ever-prescient Mr. Grover downgraded MFNX from a strong buy to a hold yesterday. Oh, the hubris. This knucklehead of an analyst put a strong buy on this stock when anyone who had any ability to even glance at, let alone read, a balance sheet could have told you that this company couldn't make it. Worse, a company that had absolutely no demand -- its so-called $2 billion backlog of business has disappeared -- shouldn't ever have been given a strong buy rating by any reputable analyst. Which brings me to the funny papers part of all of this. Lately, the press, both television and print, has been taken to task for not being credible, for not being tough enough on sources and on subjects. All of the criticism rings true to me. The idea that this Grover fellow now gets to feign shock about how quickly MFNX fell apart looks like covering up for his inability to see the 18-wheeler of destruction that's been coming at him for months now. By shifting the blame to the company, he gets to maintain a shred of credibility. Or, to put it another way, he gets to be called back again as someone who is an analyst. To me this ridiculous quote reminds us of the need for constant vigilance, and that many experts out there are strictly purported and convenient. The business press issues more free passes than there are seats in the stadium. It's disgusting. And it doesn't have to happen. A simple suggestion: Next time you read a quote by Vik Grover recommending a stock, do the opposite of what he says. I bet you'll make good money.

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