Analysts… Here’s an excerpt from an article by Bespoke Investment Group:
Brokers Trade Lower on Citi Call; Really??
Excerpt: "A Citigroup analyst is making news today for cutting estimates on the brokerages. The headline from CNN reads, "Citigroup Issues Dour View On Brokerages’ Q3; Shares Fall." The firm lowered estimates on Morgan Stanley, Goldman and Lehman, and maintained estimates for Merrill. The first thing we do when an analyst makes changes to his or her recommendations on stocks is look at their history to find out if we should really care. Based on Citi’s past calls on these firms, it’s clear that we shouldn’t…
..The fact that these stocks are trading down on calls from an analyst with the track record shown below shows how jittery investors are and how much of a pure trading environment this is." More here.
