|
PureBytes Links
Trading Reference Links
|
Keep in mind, brokerage houses both large and small, will place a buy opinion
on a stock much more readily than they will place a sell opinion. Most of
the houses have close ties to management (which can be good) and would like
to develop those relationships into "underwriting deals." You do not stay on
the good side of management by blasting the stock and recommending its sale.
So when following these opinions, one must be able to read between the
lines.....maybe a reduction in opinion from a strong buy to a buy is really a
sale.
I have been around this business for a long time and while I do not totally
ignore opinions of brokerage house research departments, I prefer to rely on
independent opinions (i.e. Value Line, Red Chip, etc.) were there is no
direct financial interest. If there are a large number of brokerage house
buy recommendations on a given stock, I tend to be skeptical. It is kind of
like, if every body is bullish, where is the buying going to come from to
drive the price higher? I try to find the stock that has not yet been
discovered by everybody....not an easy chore, believe me!
Jerry
|