NoMoreRBOC:
People often talk about conspiracy theories when discussing Wall Street analysts. But in my experience, the only "questionable" business tactics are usually from the analysts supporting the long side of the equation.
I have not read Ms. Comfort's report, but from the tone of this thread, I imagine it is somewhat negative, or at least somewhat "less positive" than the other analysts following the stock. If she has reasons to be concerned about Winstar's valuations, such as recent LMDS auctions, they should be considered, if for no other reasons than "concerned questions" are almost always the exception rather than the rule on Wall Street.
Remember, brokerage firms make money selling securities. And analysts are paid by those brokerage firms. It really is that simple.
In this market, it's much easier to talk up a security than to question the valuation.
In the current market, nobody gets fired for cheerleading a stock with the rest of the crowd. Look at the recent HP scenario prior to earnings if you need evidence of the phenomenon.
Given the pressure to be bullish, why would Ms. Comfort question the stock if there wasn't something to her analysis?
Regards,
JC
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