Monday, September 17, 2007
The Least Helpful Research Call You Will See Today
While nearly every business day brings at least one unhelpful research “call”—an analyst upgrading or downgrading a stock long after the news behind the call has already been reflected in the stock price, much the way Wall Street economists have begun to fret over weak housing sales, weak retail sales, and weak employment trends long after all three became obvious to anybody with a pair of eyes and a subscription to the Wall Street Journal—some days one call stands out particularly starkly even in a bleak landscape.
Today that call must belong to the Merrill Lynch analyst who has chosen to downgrade Northern Rock, the U.K. version of Bailey’s Building & Loan—that is, a bank suffering an actual run on deposits, and whose problems were front-page news last week—from a “Buy” to a “Neutral.”
The price on the report? Down two-thirds from its 52-week high.
Nobody can make this up.
I Am Not Making This Up
© 2007 NotMakingThisUp, LLC
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. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.
Posted by Jeff Matthews at 9:24 AM