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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Melissa McAuliffe who wrote (1477)	7/17/1998 1:19:00 AM
From: Simon	Respond to of 4509

But here's what I'd like to say about these analysts. I would just like to know the basis of the recommendation to see if there is any merit.>>> Probably no basis. He's as confused as everybody. Needed to say something. Hold must mean, buy if it goes up, sell if it goes down.

To: Melissa McAuliffe who wrote (1477)	7/17/1998 6:03:00 PM
From: Marq Spencer	Respond to of 4509

Melissa, You raise multiple valid points. There is no requirement for an analyst company to reiterate anything, or change their rating on a stock every month/quarter/week etc. In fact, changing one's recommendation in a month (when the price hasn't changed much - BTW, does anyone know what the price-target was) shows that the analyst believes that they now know something that they didn't when they initiated the coverage. Also, if the stock drops, they'll look good. Your second point is also valid - by downgrading the stock just days before the announcement, they're actually risking their reputation as well. Regarding making their reports public, different analysts firms have different business models. Lehman's business model is that they would like people to use them for stock trading - thus publishing the reports is part of their marketing effort - by the way, the customers of Lehman get the reports a couple of days before the rest of the world sees them on the web. Then there are other firms whose business model is that the research department needs to make money on the reports themselves - they then just sell them to the subscribers. I do not know what model this specific firm follows. - Brian.