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.

Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: LPS5 who wrote (8927)	4/5/2001 2:35:20 PM
From: Wayners	Read Replies (1) \| Respond to of 12617

The best research is that which is produced by "pure," research only firms and cost tens of thousands of dollars per year. No didn't know that. I thought they took the best analysts to work on the buyside and the leftovers to work on the sellside. I guess the institutions don't like any of them. I don't like any of them. I've never followed an analyst. For a specific, about a week ago Andy Neff at Bear Stearns came out with this miraculous downgrade of JNIC a day before they warned. JNIC was already trading at 1.5 times cash and yet he still downgraded it. The next day JNIC comes out with an earnings warning. Maybe a coincidence, but what analyst is going to come out with a downgrade at 1.5 times cash unless they know something. As for sellside analysts who are paid to "unload" stock, are you saying that what they conduct are large pump and dump operations? If so, are you proposing that this is a brand new practice, or that the regulators (SEC, SROs, state agencies) have turned their head on what is, as you describe it, an obviously illicit practice? Yes when its in the interest of the firm, sure. I'd say an old practice as well, but I think the brokers are more responsible. I never called it illegal. Just another dubious immoral practice if and only if they know its a bad recommendation. If they really think the recommendation is correct well no problem there. Not sure what the point is here. Just wanted to make the point that all information is out there and obtainable long before it shows up in the papers obviously? What is public information anyways? I just heard this from Joe Smith at XXX," there's generally nothing in the world that precludes such information from being either (a) rumor, or (b) lucky coincidence. Is it possible it's inside information? Sure. I guess it depends on how high up or low you are on the food chain. The further down the more likely the distortions and it just being a plain rumor. So where does the SEC draw the line between rumor and knowledge of material information? Consider the source. I don't know. I really don't feel the least bit of pity for people who bought a $120/sh stock at an analysts recommendation that they heard on Bloomberg or Reuters, and then watched the stock collapse to $2/sh. I don't either. The only reason I wanted to respond to that guy is he made it sound like the individual investor or trader was responsible for the bubble when I could point the finger at earnings momentum type funds run by professionals who would also pay up for high unsustainable growth rates for the long run. When you said "momentum," in your first message, you didn't clarify it with regard to investing or trading. I would call it investing but keep in mind the turnover percentages over 100% of most mutual funds these days. These guys are having shorter and shorter holding periods on individual stocks. I wouldn't call it trading yet but with holding periods of 4 to 6 months it isn't looking much like investing anymore.