My colleague Don shared this. Apparently, more often than not, equity analysts will tell CEOs "it's a great quarter guys".
It is pretty common for "great quarter" stocks to tank shortly thereafter.
The fact that the analysts are so cosy with the CEOs of the companies that they cover says it all. As I used to say to my students in my equity analysis course - you don't work for the company and you don't owe the company anything. Your analysis must be at arms length, otherwise you risk suffering from Stockholm syndrome.
No comments:
Post a Comment