Robert, re analysts, that's a murky topic. We all know that a "strong buy" from an analyst can move a stock. Well, ask anyone who has millions of dollars at a particular investment bank if they get some "favors" now and then (hint). That's the way the game is played.
Also, I've been at meetings where CEOs and analysts mingled and I can say that information flowed commensurate with the liquor poured. So, doesn't matter whether it's ALYD or one of the zillions of other companies, analysts get treated specially.
In the case of ALYD, their primary goal, I suspect, was to impress the heck out of the analysts. This means giving them the private tour of the factory, showing them the nature of some of the contracts, etc. After all, do you think an analyst will initiate coverage on reading press releases?
Robert, market makers and analysts do this for a living. They develop a web of contacts and can sniff out when things are cooking or going up in flames. I'm sure you're equally good at your job.
The problem is that investing is not just a chess game, it's also a crap shoot. You could know a company will beat estimates, and know the report will come out at noon on Wednesday, but there's no way you can be sure the street won't just sell off on the news anyway because the funds want to rotate out of that sector. Heck, others base their trades on theories of mass psychology and still more use T/A and let the numbers tell the story.
So, whatever is going on behind the scenes with ALYD, if anything, is no different than what happens everywhere else. Robert, I'm sure if you called Bob Gruder up today and asked him your questions directly he would give you direct answers. If you need convincing, go for it!
- Jeff |
