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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (67917)	5/18/2005 11:30:18 AM
From: RetiredNow	Respond to of 77400

Yes, I guess it cuts both ways. But consider this. I think WS analysts are wrong because they tend to follow a stock's movements with their prognostications. So if a stock has been moving sharply upwards, you will get a rash of analysts calling for the stock to move even higher. However, if a stock has been moving downwards you will get analysts issuing sell recommendations. So watch and wait. When Cisco hits low $20's, you'll start seeing a bunch of analysts getting on the bandwagon, which will feed the stock higher in the short term, before people start selling into the gains. Ed Yardeni usually does an analysis that shows this effect, but he does it for the SP500. When the market is on the move upwards, you'll that the line representing avg analysts estimates over time has a positive slope. That positive slope continues even after the market down turn has started. Then towards the end of the downturn, you see the slop go negative and stay that way until the upturn is well underway. It's all the proof I need to claim that analysts are followers, not leaders.