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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?


To: Jeffrey D who wrote (35781)7/16/2000 7:14:02 AM
From: w0z  Respond to of 70976
 
"The reason behind the rise in analyst profiles is technology, Hill said, as research reports are readily available through outlets such as the Internet for anyone to peruse."

The Internet is also raising accountability as it raises the visibility of analysts. Here's one example:

Message 14010186

After several instances of yelling "Fire!" when there is no fire, the next time they try it nobody will listen. Loss of credibility seems to be the reason many analysts do not seem to endure their jobs (BTW...where is Tom Kurlak these days?)

I also believe the ethics of research and trading desks being under the same roof needs some oversight by the SEC. It must be very tempting for trading desks to take advantage of research calls they know will impact the market (Mr. Joseph's statement below notwithstanding). Maybe investment bankers need windows around their research calls just as companies have trading windows around earnings releases...i.e. no trading except for a window beginning 48 hours after research is released.

Message 14051399

"And I want to make clear that there is never any discussion whatsoever between the analyst and the desk before a research call is made."

thestreet.com

Perhaps it is the frustration with perceived market manipulation (whether real or not) that has caused some investors to vent by making threats, etc.

For me, the best defense against "loose cannon" analysts is good knowledge and some ready cash to take advantage of the opportunities they create.