Analyst takes fire on reports

Will this turn into a new research trend: A Banc of America Securities pharma analyst Frank Pinkerton initiated coverage on seven big-time stocks this month. He distributed his initial reports, however, without first speaking to senior management. There was a time when this would have been a no-no. These days, I'm not so sure. Pinkerton did speak with investor relations staff. But some are disappointed--some see this as a sign of slipping quality in sell-side research. The business model has shifted, and investment banking is no longer subsidizing such work. So it may be that more companies are trying to get more reports out of fewer analysts. We may be in for more. The fact is the top brokerages want coverage, and they want it broad. It's good for retail and it still generates soft dollar trades.

For more:
- here's the New York Post article