Friday, November 25, 2005

Raising Charlie from “Out-Perform” to “Strong Buy”


Every business morning my instant message light starts flashing around 7:30 with the first of as many as a dozen morning research summaries from around Wall Street.

These usually take a highly abbreviated form, with stock tickers used for company names and recommendations such as “Strong Buy” or “Outperform” abbreviated to “SB” and “OP”—the goal being to pass along as much information as possible in as few words as possible.

For example, last week this came in one morning:

SNDK overreaction, Samsung and Toshiba not meeting demand, MU better for sale yesterday, prlly same today…

In a nutshell, the broker’s research analyst was saying that Sandisk’s ten-point price drop (following Intel and Micron announcement of a joint venture to manufacture flash memory for Apple) was an overreaction, because currently the largest flash producers—Samsung and Toshiba—could not meet demand anyway. Also, their trading desk saw Micron stock probably being for sale prior to the open, as it had been the day before.

Understand that these things come one after the other, usually about stuff in which I only have peripheral interest (WEBX downgrade to EW from OW—WebEx Communications being a stock I have on my radar screen as an eventual Microsoft casualty) to that which I have no interest in at all (Cont’d seller of SPY & sold 2mm XLE...—having, as I do, as little ability to play index futures as I would a roulette wheel).

What I am looking for is good stuff—anything new, interesting and fundamentally based.

So this morning when the first message popped on my screen from Charlie O’Connor, my ace contact at Leerink Swann, a healthcare research boutique, I clicked on it expecting Charlie’s usual brief, helpful, information-packed, fundamentally based briefing from his analysts.

What I got was the following (keep in mind, “OP” stands for “Outperform”):


TURK-OP-basted with garlic and herbs, was moist and tender...dont want to overload as can cause s-t coma like symptoms.

STUFF-OP-made with brown rice, cracked rye bread, marsala soaked mushrooms...reit the buy rating.

MASH-OP-White and sweet potato blend, sourcream, butter salt and pepper, needs nothing else.

CORN-OP-spoonbread, half cake, half pudding, loaded with corn,onions and spices...new tradition over here

GRAVY-OP-pour over entire plate, garnish with cranberry sauce.

PIE-OP-must have been 5 or 6 to choose, lost count tried em all...


This morning, I am raising my rating on Charlie O’Connor from “OP” to “SB.”


Jeff Matthews
I Am Not Making This Up

© 2005 Jeff Matthews

The content contained in this blog represents the opinions of Mr. Matthews. Mr. Matthews also acts as an advisor and clients advised by Mr. Matthews may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Matthews' recommendations.

2 comments:

Owen said...

Charlie covers me too, and I couldn't agree with you more. Although in this case I think maybe we should raise him from "OP" to "OW".

Its_strange said...

When you can "buy" something on a credit card but not have to pay for it for some 6-12 months how can anyone really tell if it was a good Xmas shopping season or not ? I smell another rat .