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Stock Research
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Latest Headlines
Eroding wall between research and banking
One legacy of the dotcom bust was the so-called global settlement that sought to reform sell-side stock research practices on Wall Street.
The deal called for a large fine and steps to erect something close to China walls between the research staff and the banking staff. At the time, it was ha
Groupon underwriters offer muted praise
There was a day when you could count on sell-side research to be exuberantly upbeat about newly public companies, especially if the analyst worked for the same banks that underwrote the deal. But recently, we're seeing more analysts voice a bit more skepticism than usual.
The Zynga analysts wh
Marketbrief to use XBRL statements to report news
There's so much financial news these days that making sense of it all from a trading perspective increasingly calls for enhanced software. Machine-readable news services have certainly generated more
Quattrone dazzles as old suit lingers
The return of Frank Quattrone as a deal maker has been nothing short of stupendous. He was driven into ostensible remission for years after the dotcom bubble imploded and after he was targeted by the Justice Department with perjury charges. But after he prevailed legally, he got back to business--
Shades of dotcom bubble as analysts bullish on LinkedIn
The integrity of stock research analysts reached its nadir back when the dotcom bubble imploded in the early 2000s. Their role was roundly criticized, and all the top investment banks were forced into a settlement with the SEC aimed at returning the research industry back to something resembling a
Analysts pay the price for sell recommendations
The lack of sell recommendations from sell-side analysts has long been an issue. Many use the paltry number of such recommendations as an example of the sorry state of sell-side research. But the dynamics involved with issuing such bold calls are under-appreciated.
The fact is that the persona
The benefits--and risks--of a sell recommendation
Bloomberg notes that just 5.1 percent of analyst ratings are "sells" and that of 1,890 analysts, fewer than 1 percent advised unloading a Standard & Poor's 500 stock that either later showed a decline, or rose only after they upgraded it.
There once was a day when critics pointed to th
Goldman Sachs analyst prods Pfizer to break itself up
Did the golden era of sell-side analysts end with the dotcom bust? A lot of people thinks so, with good reason. Once you took the research people--supposedly independent--off of the deal making team and you set up all of those global settlement-required firewalls, it seemed like the business model
Citigroup pays for analyst's goof
Citigroup ( NYSE: C ) analysts sent out a research note in October 2007 that contained some inaccurate information about a Greek steel company, which decided to sue Citigroup Global Markets. The drama came to a head in London, where Citigroup admitted its mistakes and agreed to pay the company f
End of CDO investigation nears?
We have suggested there might be some sort of global settlement to the CDO abuse probe that as of yet has produced no criminal charges. We indicated it might be similar to the settlement of the tainted stock research scandal that so many banks agreed to years ago. So, when news hit that the SEC, a
