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

To: michael97123 who wrote (37215)	9/11/2000 8:36:30 AM
From: Sun Tzu	Read Replies (1) \| Respond to of 70976

Not quite. Analysts get paid by the firm their at. The firm in turn gets paid mostly via investment banking (read the covered company is the client) and in house trading. The research money collected from the public is too little to matter. So the hierarchy of importance for the analysts is to (1) generate a good name for his firm with CFOs of public companies (2) Give the heads up to the head traders at their trading floors (3) Call a few very big public/institutional clients. And only then get on to work with (4) which is to advertise how smart he and his firm are by making press releases and showing up on CNBC [which is essential for (1) and (2)]. Often the time delay between (2) and (4) is half a day, though on occasions it may be as long as a day and half. So those who think analysts are holding a stock down (or pumping it up) for months are misguided. This is the game we are playing. It is pointless to argue the morality of the rules; one can only try to understand them and profit from it. Sun Tzu