Darrell, I know what you mean about those analysts. While I continue my studies for a career in academia, some of my former MBA colleagues went to Walls Street and some became analysts. When we had a reunion, those analysts were among the most pompous guys, nice suits, Rolex watches, and classmates gathered around to listen to their success stories, and tried to elicit some stock tips.
In other words, many analysts are young MBA's who are spoiled and they fell they could move millions of dollars by their analysis of upgrades and downgrades.
Now look at Cymer's PR. In a way they did not treat those analysts like pampering spoiled kids. These analysts might fell offended by that Needham episode. Did Cymer wine and dine those people? Did Cymer invite them to San Diego and gave the red carpet treatment, showing the new facility, gave them souvenirs and R&R in sunny San Diego? Is this practice wrong? This is business practice. You read it everyday about Congressman invited to attend a meeting in Vail, Caribbean for fact finding mission.
What will all this means? A good relationship with analysts will make them choose kind words, make them not to inflate whisper numbers, make them reluctant to downgrade several notches from strong buy to neutral.
The next earning report is just one part of the equation. There are more parameters than just earning numbers. And one of those parameter is that INTANGIBLE. Until Cymer dealas with that INTANGIBLE, it does not matter if the company produces an excellent performance. An analyst can always look at an elephant and either say it is an animal with a tail or an animal with a trunk.
Peace be with you always.
Andre |
