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alstry (36.06)

Wall Street HB Analysts Criminal???

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April 29, 2008 – Comments (3)

Why are Wall Street Housing Analysts blatently deceiving manipulating projections?  Why is the SEC or  other regulatory body not stepping in and addressing this nonsense?

This is a very important issue and the future of our nation is at issue.  Wall Street behavior can and will have a profound impact on our lives.  INTEGRITY, AT LEAST TO A MINIMUM STANDARD, IS IMPERITIVE IF OUR ECONOMY IS TO FUNCTION.

Three top officials at the country's largest pension fund resigned this week.  Why?  My guess is that in the next few weeks were are going to be hearing about billions in losses from bad Real Estate investments.  It may be that CA teachers may not have as much coming to them in their retirement as they once thought.  You think that has an impact on a lot of people?

We KNOW that RYL's next quarter revenues CANNOT meet current analyst revenue projections.  The analysts know the same as well because RYL's backlog and specs can't justify such projections.  But the projections persist, and some have even raised guidance for 2008!!!  Why???

Go listen to today's MTH conference call.  The analysts are almost coaching management what to say?  It's truly unbelievable if it weren't true.

What is motivating this behavior of intentional unjustifiable deception?  Why is no one stepping up(except for maybe FloridaBuilder) and saying something?  Is Wall Street about to fleece America out of its money?

Calpers sure got a nice wholloping.

CTX reports soon.

 

3 Comments – Post Your Own

#1) On April 29, 2008 at 4:10 PM, PDTBiotech (89.38) wrote:

I'm not saying it's right because it obviously isn't, but sell-side analysts' opinions aren't aimed at retail investors and shouldn't be interpreted as if they are.  At their best analysts make an attempt to be objective, at worst they intentionally manipulate the market, but that should be built into your investment model.  Same goes for executives, the financial press, and just about anyone whose opinion you hear on a stock or market.  Crappy system that should be changed, but if you're aware of it you can avoid getting burned by it.

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#2) On April 29, 2008 at 4:42 PM, alstry (36.06) wrote:

So I guess Sarbanes Oxley was just enacted, and hundreds of millions spent to comply with it, just for fun and economic stimulation?

If it was puffing it would be one thing, but you have ALL 15 analysts giving guidance that is not mathematically possible.

Not only that, most trading is now computer based and analysts estimates are a key input into the algorythems.

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#3) On May 01, 2008 at 12:21 PM, PDTBiotech (89.38) wrote:

Like I said, it's not right, but it is how it is and we can't change it.   Personally I think Sarbanes Oxley was enacted so politicians could say they did something - whether their response does anything or not isn't as important to them as the fact that they can point to reforms when people complain about corruption.  If people are using bad estimates to trade with programs that sounds like an opportunity to me.

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