Canaccord - The Moose on the Loose
They are Canaccord Genuity and their company moniker is “Ideas are the engines of our business“. What a load. The only idea a bank has ever had, or will ever have, is the result of somebody else’s effort. Banks and bankers are simply to stupid to have an original thought, much less an idea, and this Canadian investment bank, a division of Canaccord Financial, is no different. They are just a group of ignorant slugs. Am I pissed? You bet I am!
Back in January the wizards at this bank decided they were going to initiate investment coverage on ultracapacitor maker and Wax Ink Portfolio holding, Maxwell Technologies, Inc., (Nasdaq: MXWL) with a price target of $24.
Maxwell has done well over the past 15+ years transforming itself from a government electronics supplier into a commercial electronics supplier, but they still have a ways to go, and I believe any investor that takes the time to actually investigate the company will understand this to be the case.
Regardless, enter the blathering idiots from Canaccord with an extremely unrealistic target price of $24. I mean $24? Based on what? How much hair is on the rear end of the CEO?
So along comes last Thurdsay, and Maxwell announces first quarter earnings which were about what everyone thought they would be. The company also announced that top line growth for the year should fall between 15 to 20 percent. As I say, none of this was really news.
Then last Friday, the financial wizards at Canaccord decided that instead of a buy with a target of $24, they had changed their collective pea sized mind and now the stock should be a “hold” with a price target of $14.
This fart in the middle of the sermon, drove the stock price into the toilet and made millions for Canaccord Genuity if they were short the stock.
The point here is that unqualified people, in this case a bank, plucked a number out of their bunghole and came up with an unrealistic target price from the beginning.
Then when the company announced earnings that were not what these investing geniuses of the north prayed they would be, even though the rest of investment community did not get excited, these gutless wonders emptied their drool cup and changed their rating and price target which drove the stock price, at least temporarily, into the dumper.
Investment bankers? What a joke. Had they done more than try and count the number of squares on a toilet paper roll, they would have known that their expectations for the stock were unrealistic!
Personally, I hope the SEC investigates the company, fines it into oblivion and puts the whole bunch of sorry directors in jail for the next 150 years. But hey! I’m just one of many other individual investors that gets screwed by Wall Street everyday, so what do I know?
On the political front, “Quimgate” continues with more politicians sticking their fingers in the collective pie, fee required in advance, the New Jersey Nets moved to Brooklyn which pissed off Governor Christie, Spain’s debt was downgraded to BBB+ and nobody noticed, Newt, just like his presidential campaign is on the way out, Secretary Clinton is stuck on club soda unlike an ex-aide that something stuck on a blue dress, Jimmy Kimmel is nervous, Lindsay Lohan still can’t get her shi_ together, and President Obama is looking for an amen. Maybe he should learn the art of prayer first?