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Technology Stocks : Analyst Bashing (intc orcl mu amat csco)
ORCL 256.89-6.7%3:59 PM EDT

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To: j g cordes who wrote (21)12/23/1997 6:58:00 PM
From: GrokSoup  Read Replies (1) of 62
 
With respect to your first point, I agree that analyst recommendations can play havoc with traders, but so can any number of other transient things, from power outages on Wall Street to an absurd preoccupation with monthly SIA book-to-bill numbers. Without letting analysts completely off the hook, let me just say that traders, by their short-term orientation, open themselves up to these sorts of transient shocks.

On your second point, I'm going to have to plead ignorance. At my firm (as at most credible firms) it was verboten to trade in front of a recommendation change. But that's not to say that it doesn't happen -- it does. It's just a) not as big a thing as some people would like to think it is, and b) didn't happen where I was.

P.
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