April 14, 2009
– Comments (4)
firm that downgrades it WFC goes down instead lol.
Guessing earnings at BAC must be really good for that to happen.
Hmm... banks downgrading their competition... alot of credibility there lol
I think analysts gradings of stocks are fairly worthless. Maybe if you're a trader they might be helpful but for an investor they are like soda ... it might be entertaining but they're definitely going to rot your portfolio if you take them too seriously.
Looks like banks were telling the truth about this qtr being highly profitable. Lower rates have done magic again.
Yeah agreed but one should read the analyses as to why they are rated a hold, sell or strong sell and then make up your own mind. Too often I have seen a hold rating on a stock that is selling at 50% of their 12 month target which makes no sense to me. Many graders of stock recommend positions on companies based on sentiment v. economic indicators and mathematical analyses. They are followers of the herd who are more interested in how they are perceived by their advocates than in actually being a true prescient advisor (Cramer?).
Dudemonkey is correct. The longer the investment horizon the more worthless the info by the grader. They do not pretend though that they are the end all-be all advice. They only target for a year. You should still read what they have to say though--you may have missed something. I also am suspicious of a WFC grading a BAC. One of my grading advisors is C and I love their input but am suspicious of their ratings on any competitor also.