Tuesday, March 11, 2008

The Least Helpful Call You Will Get Today

The least helpful call coming out of Wall Street’s Finest today might just be from Merrill Lynch, and it is a reduction in the price target of Suntech Power Holdings—ticker STP, last trade $32.07—from $100 to $55.

And while we no strong opinion either way on Suntech, its prospects, or its current market valuation, the analyst concludes with what surely goes down as the least comprehensible paragraph in our email inbox:

While weak macro sentiment could still de-rate solar further, we believe near-term industry concerns are mostly in price; STP is our top pick; Stress-testing new strategy suggests favorable risk/reward; lack of an ’09 consensus view provides buying opportunity.

Which is why this gets our vote at the Least Helpful Call You Will Get Today.

Of course, as always, the day is still young.

Jeff Matthews
I Am Not Making This Up

© 2008 Not Making This Up 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.


Marc said...

How about B of A cutting KERX to Neutral today after the stock went from $5.26 to $0.60 yesterday?

Gil said...

Last week's Pfizer pipeline call featured this awesome prose, which was -- how you say -- deliberately obfuscatory?

"We are proactively managing our total cost structure to do what is necessary to size the company appropriately to align with our revenues so that we deliver growing profitability after the Lipitor loss of exclusivity."

--Frank D'Amelio, chief financial officer, Pfizer, Inc.

John said...

the sell-side is so goofy. jeff, you're right. what a silly mess of misguided peabrains...thank heavens we have another voice deficating on the pointless efforts of such a disastrously idiotic lot...kudos, jeff, simply brilliant...you are very lame

Jeff Matthews said...

Marc, it was a toss-up...but KERX is dead anyway, so we went with STP. But good call.

Gil, thanks for that.

John, if you're going to insult people, leave out the Yahoo message board type language, or at least spell it correctly.

Sam E. Antar said...

You may get better results throwing darts at a board than reading a Wall Street analyst's reports and following his/her advice.

John said...

you insult people everyday. you're a crusty, old hatemonger. hopefully your children won't suffer the indignity of having to work on the sell-side...

cadamyale said...

Whoa, whoa, whoa, John. What gives? You are talking about a life form only one rung above the absolute bottom, university athletic directors. How do you defend the above-mentioned actions?

For the record, no university athletic directors were harmed in the composition of this email.

Anonymous said...

Jeff: I think I've got another "helpful" call. Analyst Ed Wolfe of Bear Stearns downgraded WERN to "underperform" with a target price of 15.50 back on 03/12/2008. The funny part about the downgrade was this came only after the stock dropped from around $20 and change back at the end of 01/2008 to $18 and change as of this Friday - "good call" (NOT)!