Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (50076)	12/20/2000 8:18:18 PM
From: Gary M. Reed	Read Replies (1) \| Respond to of 436258

Nice article by Cramer tonight...me thinks he'll be writing a simular article soon on Harpo, Bagadonuts, et.al: thestreet.com When Analysts Run Out of Ammo The analysts' guns are out of bullets. Take Broadcom (BRCM:Nasdaq - news - boards). A few weeks ago Broadcom dropped severely, in a straight line from 160 to the 80s. Cut in half. When it got there the analyst community came out with both barrels to support this stock. They astonished the bears with strong buy recommendations like the one that Mark Edelstone used to juice the communications semiconductor company right back to 140 in no time flat. It was a huge move that caught the shorts right in the chest, head and stomach. They were sent reeling and the stock, which dominates the portfolios of so many momentum funds, looked like it was back in the highlife again. But now the grim reaper has revisited Broadcom and sent it back down to the 90s again. This time though, its soul-mate, Conexant (CNXT:Nasdaq - news - boards), has just blown up and the whole telco-cable modem infrastructure seems doomed to lower spending levels. That's not what is important, though. What is important is that the analysts have no ammo left. They all love the stock. There is no one left to upgrade of substance, no one who can defend it. And you can't parachute ammo into these beleaguered souls, as their credibility seems so shot. My bet would be that the stock works its way lower, barring some miracle cessation in selling or short-covering rally of huge proportions. Many of the glory-day stocks have analysts with no ammo behind them. So the pain continues.