InvestIdeas

F&@* Wall Street Analysts and Their Perpetually Wrong Targets By Jeff Reeves

Dear ladies and gentlemen of the jury: I would like to formally petition the court to throw dumbass Wall Street “analysts” in jail, without parole, and throw away the key.


http://www.investorplace.com/2012/05/sc ... en=3879240

Former Sell-Side Analyst Reveals Trade Secrets by Gary Spivak

Take a “random walk” in the shoes of the typical sell-side analyst, and see how those shoes could affect what they say and how they say it.

In my last article I told you why you shouldn’t look too far into analysts “Buy,” “Sell,” or “Hold” ratings. Simply put, there’s just not much incentive for analysts to initiate anything but a “Buy” rating.

That’s why you see many more “Buy” ratings than “Sell” ratings.

To understand this phenomenon better, let’s take a look at the four potential results facing the sell-side analyst.

http://www.investmentu.com/2012/June/se ... alyst.html

Wall Street’s Analysts are Excessively Bearish by Cullen Roche

Small investors aren’t the only one’s turning bearish on equities. Apparently, the persistent negativity is spilling over to Wall Street as well as sell side analysts become more bearish than they’ve been in 15 years.

According to Merrill Lynch’s sell side consensus indicator just 49.3% of analysts are currently bullish. This level hasn’t been seen since 1998.

Merrill Lynch says (via Business Insider):

“After triggering a Buy signal in May, our measure of Wall Street bullishness on stocks declined again, marking the ninth time in eleven months that the indicator has fallen.

The 0.8 ppt decline pushed the indicator down to 49.3, the first time below 50 in nearly 15 years, suggesting that sell side strategists are now more bearish on equities than they were at any point during the collapse of the Tech Bubble or the recent Financial Crisis.

Given the contrarian nature of this indicator, we are encouraged by Wall Street’s lack of optimism and the fact that strategists are recommending that investors significantly underweight equities vs. a traditional long-term average benchmark weighting of 60-65%.”

http://pragcap.com/wall-streets-analyst ... ly-bearish

The Hong Kong office of Nomura fired 15 analysts out of a total of about 50, almost 30 percent of its research team on Wednesday, as an uncertain global economic outlook forces the Japanese brokerage to cut costs, according to people who asked not to be named.

Source: SCMP

God invented analysts to make weather forecasters look good.

not vested

HK analyst eviction fuels fears that negative research being muffled

PUBLISHED: 03:05 GMT, 14 August 2016 | UPDATED: 03:05 GMT, 14 August 2016

By Michelle Price

HONG KONG, Aug 14 (Reuters) - The ejection of an analyst from a company briefing in Hong Kong last week has laid bare the pressure on negative research in the Asian financial hub, fuelling concern that critics of companies are being muffled amid a broader clampdown on freedom of speech.

Macquarie analyst Timothy Lam was told to leave an earnings briefing by China's Pax Global Technology on Wednesday after a heated exchange with chief financial officer Chris Lee that was videotaped and circulated on social media.

Lam was the only analyst at the time covering the stock with a 'sell' recommendation, according to Thomson Reuters Eikon data.

Source: REUTERS

http://www.dailymail.co.uk/wires/reuter ... z4HHFoloZO

Analyst research is a huge waste for this one reason

‘According to a recent Thomson Reuters survey analysts historically have underestimated earnings 63 per cent of the time’

One big reason for these inaccurate estimates is that analysts are heavily dependent on corporate finance officers for the information deployed in their forecasts.

Corporate executives like toying with them and can often deliberately mislead so as to lower expectations which are then confounded by “a better than expected performance”.

It would be foolish to assume that conflicts of interest between analysts and the companies that do business with their bosses has disappeared.

Source: SCMP

http://www.scmp.com/business/money/mark ... big-reason

The Difference Between Buy-Side Analysts And Sell-Side Analysts

by Vince Martin

Sell-side analysts work for firms that “sell stock,” i.e. brokerage houses, market makers, and investment banks.

Buy-side analysts work for businesses that usually buy stocks, including hedge funds, pension funds, and other institutional investors.

Source: Investor Place

https://finance.yahoo.com/news/differen ... 46877.html

The Difference Between Buy-Side Analysts And Sell-Side Analysts

by Vince Martin

Sell-side analysts work for firms that “sell stock,” i.e. brokerage houses, market makers, and investment banks.

Buy-side analysts work for businesses that usually buy stocks, including hedge funds, pension funds, and other institutional investors.

Source: Investor Place

https://finance.yahoo.com/news/differen ... 46877.html