Sell-side research still valuable at retail?

Merrill Lynch's decision to restrict access to its research is an understandable one. They have invested a lot in such work, and whether it is valuable or not, it is a service to customers, not the non-paying public. The firm will now prevent non-clients from viewing Merrill research on its website and delay the release of analyst reports to the press. If a piece of research turns up in a public venue just seconds after it is released, well you've got to do something. You might be tempted to think that this suggests that perhaps the value of sell-side research is a bit higher than we think. Brokerage firms need something to differentiate themselves, and proprietary research is still a powerful value-add at the retail level. Over exposure certainly cheapens the perceived value, not the real value. You still have to wonder about the model--or lack there of.

For more:
- here's an update from New York Business

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