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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Bocor who wrote (46576)	1/17/2002 9:54:35 AM
From: stockman_scott	Respond to of 65232

Redback Networks Raised to `Buy' at Frost Securities By Lindsey Mackay <<Princeton, New Jersey, Jan. 17 (Bloomberg Data) -- Redback Networks (RBAK US) was raised to ``buy'' from ``hold'' by analyst Mark Sue at Frost Securities Inc.>> ___________________ These ANALysts just speak out of BOTH sides of their mouths and its just a big game...Within the last 2 weeks we had Wells Fargo UPgrade RBAK to a Strong Buy and set a new price target of $10....Then we had Morgan Stanley Upgrade RBAK with an Outperform rating and a $5/target --> of course they were off since RBAK ran up all of last week to well over $6...My hunch is Morgan Stanley really liked what RBAK's management team had to say in yesterday's conf. call but they want more cheap shares for their accounts. How do they get them..? Simple, they downgrade the stock and cite 'valuation concerns'...quietly buy-up shares from all the folks stopped out of their positions or scared to stay on board. This increases their commission volume too. Once Morgan Stanley has acquired all the shares they need they will wait for ANY good reason to change their forecast --> soon enough they'll be back with an OutPerform rating and a much higher price target. It's a churn 'em and burn 'em game....IMHO, the vast majority of the ANALysts have virtually no credibility at all (just look at Fortune cover story a few months ago that described this in detail). Often the ANALysts have so many conflicts of interests that its not even funny. The bottom line...I don't pay too much attention to them. They can help manipulate a stock price and create some great buying opportunities though...=) Regards, Scott