RE: [CANSLIM] analysts

From: "Duke Miller" <dukemill@tampabay.rr.com>
Subject: RE: [CANSLIM] analysts
Date: Mon, 12 Aug 2002 16:44:56 -0400
Next Article (by Subject): Re: [CANSLIM] analysts "Winston Little"
Previous Article (by Subject): [CANSLIM] analysts "Patrick Wahl"
Top of Thread: [CANSLIM] analysts "Patrick Wahl"
Next in Thread: Re: [CANSLIM] analysts "Winston Little"
Articles sorted by: [Date] [Author] [Subject]
This is incredible.

I pulled up the story, and was further shocked by this revelation:

In a discussion with (his  boss) Mr. Kim about his progress on the
report, Mr. Boss made clear his doubts on the sector. He said Mr. Kim
began to fret. Mr. Boss, who sat within earshot of Mr. Kim, said his
superior called the investment bankers and discussed the report, but was
careful to do so on his cellphone. Mr. Boss said that Mr. Kim had told
him to be careful to limit conversations with investment banking to
cellphones because Mr. Spitzer's release of the now infamous Merrill
Lynch e-mail messages had been so damaging to that firm. Furthermore,
internal phone lines, which might be taped, were not to be used.

And near the end of the article:

"In an affidavit that Mr. Boss submitted to Salomon and the New York
attorney general, he said investment bankers at the firm regularly told
Mr. Kim of pending banking assignments and merger and acquisition
activities involving companies in his sector. "In violation of the
rules, Steve issued favorable research reports on the companies involved
(homebuilders) after he became knowledgeable of the transactions," Mr.
Boss said in his affidavit.

"Mr. Boss also said in his statement that shortly after the Masco
Corporation, a maker of building products, sold 22 million shares to the
public in an underwriting co-managed by Salomon this spring, and after
Mr. Kim had raised his estimates for the company, Mr. Kim asked Masco
management to help with the installation of a new kitchen in his
Westchester home. According to Mr. Boss's affidavit, Masco spent more
than $10,000 sending materials and two high-level managers from Michigan
to Mr. Kim's home for several days."

And this is a subsidiary of Citigroup?

With all that's gone on, these guys are either brain-dead, or totally
brain-washed.

Duke



- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com] On Behalf Of Patrick Wahl
Sent: Monday, August 12, 2002 12:05 PM
To: canslim@lists.xmission.com
Subject: [CANSLIM] analysts


Well, those Wall Street weasels are still weasels, even after promising
reform.  
Here is the link, since it requires registration, some people will
probably not be able 
to get there or wish to register, so I've excerpted a couple of
passages below -

http://www.nytimes.com/2002/08/11/business/yourmoney/11BROK.html


The two executives boasted that Salomon, Citigroup's investment bank 
subsidiary, had been the first to adopt reforms suggested by Eliot
Spitzer, the 
New York attorney general, who is investigating Wall Street research.
They 
also proposed additional moves that regulators might take to prevent a
firm's 
investment bankers from exerting improper influence on its research
analysts ..... As Mr. Boss tells the tale, in late June, after spending
weeks on a report 
analyzing three office furniture companies, he was lukewarm about the
stocks' 
prospects and assigned them a neutral and high-risk rating. He argued
that 
until the overall business climate improved, demand for these companies'

products would be lackluster. When two Salomon investment bankers and
Mr. 
Boss's immediate supervisor saw the draft report, they demanded that he 
revise it to be more upbeat. Mr. Boss refused. A few days later, on June
27, he 
was fired. Mr. Boss, 33, was offered $24,230 in severance from Salomon, 
which he refused.

Beginning on June 3, for example, the firm said that any fact checking
by the 
investment banking division of draft research reports would be limited
to the 
first research written about an initial public offering. Moreover, the
rules said 
that any draft research sent to investment banking for fact checking
"must 
omit the rating and target price as well as the investment thesis and
valuation 
analysis sections."

According to Mr. Boss, two Salomon investment bankers, Richard Moriarty 
and Marc Schneider, flouted those rules the week of June 23, demanding
to 
see Mr. Boss's report, which was in draft form on his laptop computer. 

Stephen S. Kim, the analyst covering home-building stocks at Salomon and

Mr. Boss's immediate supervisor, told him to put the report on the
firm's 
internal network so it could be reviewed by the investment bankers. Mr.
Boss 
protested, noting the firm's new rules. Nevertheless, Mr. Schneider soon
went 
to the research department and reviewed the report on Mr. Boss's laptop.
Two 
of the three office furnishings stocks that Mr. Boss had advised
investors to be 
cautious of " Interface and Steelcase " had recently issued bonds that
were 
underwritten by Salomon. 




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



- -
- -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.