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Strategies & Market Trends : Due Diligence - How to Investigate a Stock -- Ignore unavailable to you. Want to Upgrade?

To: Don Pueblo who wrote (40)	3/29/1999 10:56:00 AM
From: Jay	Read Replies (1) \| Respond to of 752

Another view of analysts: Message 8577183

To: Don Pueblo who wrote (40)	3/29/1999 8:51:00 PM
From: ubrx	Read Replies (1) \| Respond to of 752

TLC, I like this thread. Thanks for starting it. I have another open ended question. How about pending litigation? Product liability suits and/or patent infringement suits can be a real wildcard for future profitability of a company. When you see these in a 10k do you steer clear or try to take a reasonable guess at which way the courts will decide and bet accordingly. Jim

To: Don Pueblo who wrote (40)	3/30/1999 3:56:00 AM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 752

TLC, These guys are paid serious money to do this kind of work, and they earn their money. Most of them are really good at what they do as far as research is concerned. They look in every crack and crevice for information, and I find their information quite valuable. If the analyst is respected, I pay attention. I guess another way to say it is: I look, but I look for what makes sense to me, not necessarily what makes sense to the analyst. I have found recently that it is now very necessary to pay attention to which analyst is making what recommendation (especially "BUY" or "STRONG BUY"). The problem is particularly acute in NASDAQ stocks where the analyst works for a firm that makes a market in the stock that s/he is recommending. In my opinion, under these circumstances, the analyst's report should be reviewed with a skeptical eye. KJC

To: Don Pueblo who wrote (40)	3/30/1999 1:12:00 PM
From: Bob Rudd	Respond to of 752

Analyst: Most widely followed stocks have an "Axe" the analyst whose opinion on that stock is paid the most heed. When the Axe changes his view, the stock moves. It's probably a good idea find out who it is and what he thinks for that particular stock. An example might be Henry Blodgett, now of Merrill, on Amazon. While at CIBC Oppenheimer he proffered the opinion that it was worth a like 50% more than the prevailing price...the stock soared past his prediction and Merrill fired their bearish analyst and hired Henry. This is not to say he's right about the value of Amazon only to illustrate that the lead dog can really move the sled.