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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Tito L. Nisperos Jr. who wrote (59465)	1/26/2002 5:06:49 PM
From: Paul V.	Read Replies (1) \| Respond to of 70976

Tito, Where is our mentor, Lester E. I have not seen him posting for ages. Our favorite Judge should report in. :) Paul

To: Tito L. Nisperos Jr. who wrote (59465)	1/26/2002 10:14:59 PM
From: runes	Respond to of 70976

Thread, I give you the analyst's song - (To the tune of the Byrd's Turn, Turn, Turn) To every stock, churn, churn, churn There is a reason, churn, churn,churn And a time for every recommendation to the public A time for "Buy!", a time for "Sell!" (soto voce) (A time for pump, a time for dump) A time to hold, a time to accumulate Listen to me, I swear it's not too late! What can I say? It's cold rainy miserable day and I is bored! ....The key to analysts is to understand that what they tell the public is what they want the public to do - to the advantage of their clients. It may or may not be what they are telling their clients. ...If the stock is a buy they will tell the house, then the preferred clients, then the general clientele. After they have their positions then they will tell the public to buy driving up the stock and making their clients happy. ...If the stock moves too quickly before they get their clients in then they may talk down the stock in public - "overvalued", "too soon to call a bottom", "near term weakness". Internally they are saying "buy on weakness". ...If the market is stagnant and they are not getting enough churn out of the clients accounts, they may give an internal "short term buy" then an external "reiterate buy" followed by an internal sell. Gotta keep that churn going! ...And, if the stock is a sell they will go through the same procedure except that the sell becomes a downgrade. Or maybe they say nothing. Or maybe they reiterate a "buy based on long term fundamentals". ...And sometimes they just outright lie. Like Jeffrey Vinik back in '95 managing Fidelity Magellan Fund. The fund had a large exposure to the semi equips and the market was going bad. So he publicly lauded the semi equips as a great buy while Magellan was dumping their position. Quite the embarrassment when that became public. Three months later he was quietly replaced by Fidelity. ...So the next time you hear an analyst's recommendation, first read the following sentence and then read the recommendation - ..."Mr. Public, I already have my clients positions established. Now, what I need you to do is..."