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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 (88)	3/30/1999 4:01:00 PM
From: Bob Rudd	Respond to of 752

A key distinction when dealing with Analyst revisions or for that matter just about any market news, is that you can rarely if ever front run public information. That is, by the time Merrill's analyst puts out a new "Gem" of info, the "Thundering Herd" has already traded on it and dropped a dime to the major players. Individuals don't get first call, 2nd call...the get just about last call on new info. The news is in the price by the time you get it...nearly always. Anyone looking to trade the markets should have at least a basic understanding of the Efficient Market Hypothesis EMH...Burton Malkiel's "Random Walk" can be helpful supplying insights into this. Note: I don't believe EMH totally, but it IS substantially true and to not understand that is to ignore 40 years of research confirming it. The value of Analyst reports is filling in the gaps and coming up to speed in something that may have discounted the news...then forgotten it or misunderstood it and moved on to something else leaving a decent value behind.