Tag: analysts

Extracting blood from a Lehman Brothers turnip

From the mailbag …

Made me laugh

Made me laugh

It’s beating a dead horse to bother filling out the myriad of forms within, particularly if your purchase of said securities was to cover short positions. Like with Fannie Mae. And maybe even Bear Stearns, if at the time you were playing Who’s The Counterparty (for entertainment purposes only, of course).

MG signing off (as by now the accountants and analysts ‘responsible’ have left the business anyway)

Analysts now picking bottoms

The PR hacks say another 4% decline in the S&P fully prices in a recession.

Time to watch out below?

Today’s finance point to ponder

Tech spending pessimism aside, ask yourself why a securities analyst makes a career change…into the public relations industry?!

Apple Stores have gravitational pull on analysts’ brains

I found the whole bit from Piper Jaffray suspect, at best.

It seems PJ completely blew their iPod projection, and the iPod touch isn’t breaking any records either. The analysts failed to mention that Apple was handing out big red sale flyers on Friday which subsequently wound up on shopping mall benches (hence, the draw). And, 5.3 Macs and 1 iPhone per hour – the numbers were 4.3 Macs and 1.3 iPhones per hour in August. Apple could fare no better on what is supposed to be the busiest shopping weekend of the year when compared to a so-so back-to-school sales period, with a “red flyer” sale going on?

There’s more speculation here.

A four question financial/current events quiz

Rhetorical, so you can’t fail:

Who listens to analysts?

googchart1.jpgObviously a lot of people do, as do a lot of people’s brokers, who the people, in turn, listen to. And round and round we go.

From eWeek: The stock that bullish analysts on Wall Street said earlier this month was headed soon for $600 turned tail and fell below $400 as the shares suffered their worst day and week of trading since the Web search leader went public in August, 2004.

In just a week, poof! There goes $20 billion.

Ad Trends and Analysts

Once again, stock analysts cannot make up their minds about the search advertising model. Month on month, these guys swing recommendations like Babe Ruth swung at fastballs – with reckless abandon and little emphasis on quality. The latest is a flip flop by the folks over at RBC Capital Markets (see Google, Yahoo! Ripped).

Now, I have to give some minor credit, as the companies in question cannot proceed on their tracks forever. But putting in fairly aggressive buy recomendation in January, only to reduce the price target by close to 20% in February, leads me to believe that they really have no idea what is going to happen.

They don’t. Running searches on a Windows 2000 workstations, crunching a one page spreadsheet with nary a variable built in which resembles the companies’ business model drivers, and then issuing a public press release, hardly qualifies these analysts as credible. But that is IMHO.

For further reading, see Sell-side Equity Analysts Continue Guessing.


Never Argue With Billionaires

Mark Cuban has an interesting post on shorting stocks, entitled I feel so dirty….Naked Shorts.

While most of Mark’s post targets SEC rules regarding stock loan regulation and its related market impact, I am not going to argue with him about shorting as he is right on target (most of the time). I short stocks as well – in fact I short more stock than I buy. Reason being something similar to what Mark says about bias.

Sell-side Equity Analysts Continue Guessing

Eweek recently presented an article entitled Boggled by Google: Wall Street Way Off Mark. I say forget the analysts, and good for Google. Keep’em guessing boys, while you continue to beat the pants off even your own internal estimates. The game that is generally played between analysts and the companies they follow is getting turned on its head here. Google has a complex business model; one that a white-shoed analyst with a fresh Harvard MBA is going to have tough time picking apart (that is, unless he or she also has a PhD in mathematics from MIT).