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Strategies & Market Trends : The Rational Analyst -- Ignore unavailable to you. Want to Upgrade?

To: ftth who wrote (1203)	6/20/1998 5:16:00 PM
From: Susan Saline	Read Replies (3) \| Respond to of 1720

copy/paste/edit/for ease in reading To: +Rainier Trinidad (1202 ) From: +dave horne Saturday, Jun 20 1998 3:45PM ET Reply # of 1205 [Analysts: a related story] the link: msnbc.com or a screwed-up format copy: THE PHENOMENON OCCURS more often at this time of year because January is exodus month on Wall Street. Since most securities firms pay annual bonuses near the end of the calendar year, many players in the industry wait until they've pocketed the cash before they move on to even greener pastures. WHY SHOULD YOU CARE? It sounds pretty harmless, but those new ratings often move stocks - or are perceived to move them - and investors need to be aware of whether such occurrences should be taken seriously. We think they should be, for a variety of reasons: The confluence of events surrounding a new analyst's coverage captures, in a microcosm, the relationship between sell-side analysts and the buy-side portfolio managers and high-net-worth individuals they try to influence. While many fund managers say new coverage is usually not newsworthy, it can be significant when an analyst changes an opinion after changing firms. This year, the process has been accelerated by all the merger-and-acquisition activity in the brokerage industry. The combination of Salomon Brothers and Smith Barney alone produced a phalanx of top analysts looking for new homes, whether by choice or circumstance. Bodies in motion In high demand and lured by richer prospects, analysts often switch firms, taking their expertise and opinions along for the ride. Here's a look at analysts movement at leading brokerages, July-December, 1997: Brokerage Analysts Departed Joined Net Merrill Lynch 286 23 49 + 26 CIBC Oppenheimer 53 5 16 + 11 NationsBanc Montgomery 52 1 10 + 9 Morgan Stanley Dean Witter 210 1 9 + 8 Piper Jaffray 23 1 9 + 8 Credit Suisse First Boston n/a 1 8 + 7 PaineWebber 56 1 6 + 5 BT Alex. Brown 71 0 4 + 4 Goldman, Sachs 72 2 5 + 3 Deutsche Morgan Grenfell 35 2 4 + 2 A.G. Edwards 45 1 3 + 2 Prudential Securities 53 5 7 + 2 UBS Securities 45 1 3 + 2 Lehman Brothers n/a 0 1 + 1 Bear, Stearns 68 6 6 0 Donaldson, Lufkin & Jenrette 64 2 2 0 Hambrecht & Quist 30 0 0 0 Dain Rauscher 32 11 0 - 11 Salomon Smith Barney 69 18 1 - 17 Source: Securities Week