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Technology Stocks : QUANTUM
QNTM 8.720-7.0%Dec 24 12:58 PM EST

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To: Dale J. who wrote (6282)12/8/1997 4:58:00 PM
From: Sam  Read Replies (2) of 9124
 
"Nobody is saying analysts shouldn't be allowed to continue to work for clients. The point I make is simply the company should have a very strict policy of only disclosing information to everyone at the same time. No exceptions."

Obviously, the company shouldn't be telling the analysts one thing and individual investors another. But everyone has the right to call the company and ask questions, whether you are an individual investor or an analyst. Some investors--and even some analysts--know how to ask those questions better than others. And also know what questions to ask. And have more resources to check various facts--e.g., by checking with suppliers, customers or distributors. Companies may reveal things to analysts that they don't to individuals just because of the nature of the questions asked. It isn't that they are "keeping" things from individuals, necessarily.

Unless individuals do their own research as a full time job, and unless they have a lot of resources to check these things, analysts who are diligent and intelligent will always have some edge. That doesn't mean that they will profit from it necessarily--they are only human, after all, subject to the same emotions that we are. And (need I say it?) they aren't all diligent or particularly intelligent.
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