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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: kollmhn who wrote (80209)	2/18/2007 11:46:13 AM
From: ridingycurve	Read Replies (2) of 206305

Laszlo Birinyi wrote an article in Forbes a couple of years ago supporting rolatzi's observation: <<It seems that they often accumulate shares when they downgrade and sell their holdings when they increase the rating>> Birinyi stated that now the analyst's duty at the big houses was to feed out information that assisted the houses' internal trading operations, as well as benefiting their very wealthy clients. He cited one analyst who updated his rating on one stock weekly, and inferred that there could only be one logical reason for doing so. He further stated that the truly gifted analysts had left the big houses in favor hedge funds, where they not only earned more money but were protected from legal liability for their calls. What were primarily left were relatively incapable analysts who understood that their primary role was to act for the benefit of their masters. Birinyi also noted that the retail base for the big houses had become ever smaller as retail investors gravitated to discount brokers, so their was really not that much retail base to serve anyway. JFWIW Edit: Birinyi is known to track block trades, so he can probably back up his assertions.

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