Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: dpk who wrote (21953)	7/19/1998 1:05:00 AM
From: dave db	Respond to of 70976

DPK, I have had a full service broker at Payne Webber for 3 years now. My guy has become a friend, that really helps. Let me give you the pro and cons as I see it. Pros--- 1. The research and the devils advocate thing are great!!!!! 2. Most of these guys work on Saturdays if they are truly involved--- ask that question. If he works on Saturday so can you. 3. If you have a question and he is not there, someone will still answer it. 4. Your broker will use your ideas to sell stocks to other clients = to lower comissions for you-- the small blocks I buy for my kids are free. 5.My guy is a tech specialist, but he always looks at balance. It is not bad to mix in Gillette with your AMAT. Cons----- 1. The comissions are high. 2. You will miss trades at your price because you have to get ahold of him------ unless you have an order placed previously. 3. He is managing alot of accounts, humans make mistakes or forget. it is nessesary for you to help him. 4. It is hard to get out if you have bad news on a stock, especially mid-day. Note: It is the best thing I have done as far as the long term stocks. Just my 2 cents Dave

To: dpk who wrote (21953)	7/19/1998 1:30:00 AM
From: Jacob Snyder	Read Replies (2) \| Respond to of 70976

dpk: re: "I am now looking to open brokerage accounts with full service brokers to get institutional-quality research." Unless you are opening an account with 5-10 million $ minimum, do not expect to get timely institutional-quality research. Assume that, even if you do get good info, the institutional investors will get it weeks to days before it's available to you. The fundamental problem is that brokerages (and everyone who works for them) do not make their money by providing you (a retail/individual/small investor) with good advice. There is an inherent conflict of interest, and the playing field is not level. I have an account with E-Trade, which provides me with cheap trades, an online database of info., and no live brokers. I'm thinking of establishing an account with DLJdirect. For accounts over 100,000$, you have access to their research reports online. For smaller accounts, there is a large amount of fundamental info available, which is probably more useful than the analyst's opinions. When I have had access to "institutional-level research", I haven't found it any more useful than the best posts on this thread, or the WSJ, or listening to conference calls during earnings season. As far as which analysts do a good job with AMAT: none of them. A year ago (mid-1997), the consensus earnings estimate for 1998 was about $2.70. The actual results are turning out to be less than half that number. Every one of them was way off the mark. In July 1997, noone issued a sell recomendation, or cut earnings estimates. There is no substitute for thinking for yourself. If you're going to depend on an (expensive) broker's advise, then you should put your money in a mutual fund. At least a mutual fund manager's interests are fairly closely aligned with yours; a broker's are not. I realize this sounds quite cynical, but it's the truth.