Re: [CANSLIM] KMart vs Enron

From: "Patrick Wahl" <pjwahl@attbi.com>
Subject: Re: [CANSLIM] KMart vs Enron
Date: Tue, 22 Jan 2002 20:21:55 -0700

Next Article (by Author): [CANSLIM] Kmart has a place Ronald 9 Davis
Previous Article (by Author): Re: [CANSLIM] WDFC - Market needs a little lubrication ... "Patrick Wahl"
Top of Thread: Re: [CANSLIM] KMart vs Enron "Tom Worley"
Articles sorted by: [Date] [Author] [Subject]

On 22 Jan 2002 at 17:44, Tom Worley wrote:

> I no longer believe that I can rely on analysts, nor that the more analysts
> the better. Frankly, I trust little aside from my own analysis, and
> communications with corporate officials. I recall one analyst some years ago
> who discovered that a company was doing underwritings, then booking the
> money raised as revenues from its European subsidiary (College Bound??),
> thereby inflating its overall sales figures. His reward for this discovery?
> He got fired from his firm, even though less than a year later he was proven
> correct. I have heard nothing from him since then. I hope he is doing well,
> but suspect his industry treated him very poorly despite his honesty.
>

I never thought too much of analysts in the first place, I never thought they really 
understood markets and stock price movement, but I did think they probably 
understood the industries they covered.  However,  after the technology meltdown 
we had in the last 2 years with almost none of it foreseen by any analysts, now I 
don't even think analysts necessarily have a very deep understanding of the 
industry they cover.  (And a few weeks ago on some radio show, I heard that there 
were still analysts recommending Enron right up to the day they went broke, some 
with earnings estimates of $1.20 a share for this year)

I've heard other stories about analysts blowing the whistle and getting in trouble, I 
think it happened a few years ago when someone questioned Trump's company and 
the soundness of its debt, think he may have gotten fired.  So anyway, the point is 
you can't expect the financial industry to blow the whistle on anyone.

- -
- -To subscribe/unsubscribe, email "majordomo@xmission.com"
- -In the email body, write "subscribe canslim" or
- -"unsubscribe canslim".  Do not use quotes in your email.

Go to Jeff Salisbury LWGate Home Page.