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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 231.72

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1:48 PM EST

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To: Derrick P. who wrote (18515)	9/26/1998 3:09:00 PM
From: Glenn D. Rudolph	Read Replies (1) of 164684

The question for investors is: ''Can you trust your analyst?'' Unfortunately, the answer is not very much. At the major Wall Street houses, which thrive on investment banking, every analyst has a potential conflict of interest. The ''Chinese Wall'' that on paper still separates a firm's analysts from its investment bankers continues to crumble as analysts are encouraged to scout deals. The analyst's firm is either the investment banker for a company he or she is covering--or it's wooing the company for a piece of that juicy revenue stream. A study co-authored by Georgia State University assistant professor Siva Nathan looked at reports on 250 companies by analysts whose firms had investment-banking ties with those companies and an equal number from analysts with no ties. The investment bankers' analysts had 6% higher earnings forecasts and nearly 25% more buy recommendations.

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