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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Keith Monahan who wrote (47890)	2/23/2001 9:30:58 AM
From: Rande Is	Read Replies (5) \| Respond to of 57584

The government will not meaningfully address the key issue . . . a lobbying group will not help the individual investor Is that not a contradiction? important change you would lobby for Keith, there are so many. . . and all are important. . . . but here's one that affects us all on a daily basis and is a catalyst for manipulation by the largest brokerages. . . Analyst Coverage Disclosures Each time an analyst issues an upgrade or a downgrade on a particular stock; raises or lowers targets; begins coverage on a stock; discusses a covered stock in a featured media interview; . . . their employer should be required by SEC Regulation, to file a simple form within 7 days of the event. The form states the following: - - 1. Total positions [long, short, open, closed, covered or naked] of securities related to the stock in question held by analyst and employer at market close: 3 days prior to event, 1 day prior to event, 1 day following event and 3 days following event. - - 2. All trades [long, short, open, closed, covered or naked] of securities related to the stock in question held by analyst and employer on the day of the event. - - 3. Transcript of the event, including press releases, interviews, analyst reports and any other public contact. - - 4. Official Reason for change of coverage - - 5. Sector upgrades and downgrades would require this same disclosure for the 10 leading covered stocks in the sector covered. Upon submission of form, it would appear in Free Edgar database. This simple unobtrusive regulation would give the individual and the media opportunity to examine the manner in which the brokerage house, etc. handled trading in the stock in which they or their analysts are covering. Example: Back in the spring, when 5 analysts upgraded Dell on the day they missed earnings and warned of future misses, we could see how they handled themselves. . . why they upgraded in spite of such bad news. . . if their trading was consistent with their upgrade. We have this type of tracking presently: restex.com . . . but actual positions by various brokerages are the unknown factor. . . and are widely known to be the true reason for their actions. [Remember, this game is two-sided. . . big brokerage houses, Wall St. Insiders or other such power brokers, who we call the "Po' Boys" VS. the individual investor/traders . . . . . nobody argues this fact.] Same thing with the PCLN upgrades amid steadily dropping stock price. . . . did brokerage sell into buying created by upgrades? Today we have no way of knowing this. But a competent lobbying group giving a voice to the Individual Investor could help to bring about such regulations as this one. And this is the type of information that will FINALLY provide accountability to analysts and their employers. It is the sort of INFORMATION that the Individual Investor wants, to make a PROPER decision. . . and needs to be able to sort out the kernel of truth. . . or the "wheat from the chaff". . . the fluff, the deceit and the hype. But we, as Individual Investors, must and WILL [at least on Insighters] establish a voice. And we NEED a lobbying group in Washington to help assure that our interests are being represented. This is why I am excited to hear that Arthur Leavitt is asking for the start of a lobbying group for the Individual Investor. Everyone has a lobbying group to protect their interests these days. There are thousands. Just name the cause. Aside from being AFRAID of an Individual Investor Lobbying Group completely bumbling the job, resulting in further restrictions. . . . why do you feel that the Individual Investor does not deserve competent representation? Rande Is