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

To: sandintoes who wrote (52707)	6/27/2001 9:29:31 AM
From: Rande Is	Read Replies (1) \| Respond to of 57584

Sandintoes, be careful not to confuse specialists with analysts and market makers. They differ. Floor specialists handle the individual large trades on the NYSE. Market Makers handle the large trades on the Nasdaq. Small trades are typically handled automatically by a sophisticated computer system set to respond in a specified way to bids above or below the current spread and based on current tick. Analysts are that group of nephews and brothers-in-laws of Wall Street big shots. . . who are employed typically by investment banks to analyze various top companies as to whether they deserve their current valuation or not. At least that is what they say their job is. We know that there are two entities that you never put down in business. . . your customers and your prospects. And to an investment bank, ANY large corporation may be either a customer or a prospect. That is why you never see stocks move from a "BUY" to a "SELL". The worst grade a stock can get is a "Market Underperform". . . which is given only rarely. . .and never to stocks like Lucent, A.T. & T. or Nortel. . . but rather to "Mom & Pop's Pizza". . . which are not a prospect of the investment bank. This is what congress is looking into these days. . . thanks to the complaints of individual investors and word spreading across investor communities about how corrupt analysts and/or their employers can be. One of the reasons we dislike analysts so much is that they upgrade stocks so that their employer can attract attention of the company for their investment banking group. . . .or so that their employer [or their largest customers] can unload their shares, having heard the company is about to go belly up. . .or lose a major customer, etc. When an analyst downgrades a stock, it is far too often for the purpose of moving the price lower, because their employer has a large fund wanting millions of shares at the lowest possible price. What is rare is an analyst making a call to help the public. . . .I couldn't tell you the last time I saw that happen. Why should they? The market is a war between the large investment banks and Wall Street Insiders versus the small retail investor, individual trader, small to medium mutual funds. Yes, it is just plain manipulation, when analysts MOVE a stock to suit their needs. It is technically legal. . . .unless we individuals were to do it, then it is illegal. And this is why congress is asking questions. Hope that helps clear up any confusion. Rande Is