Analyst Calls: Almost as Timely as the Newspaper
Wednesday, May 21, 2008 at 11:58AM In this morning's Wall Street Journal, the "Heard on the Street Column" highlighted how investment banks could face additional write-downs related to the hedges they put in place to offset losses in their real estate and other credit related securities. Apparently, these hedges haven't quite worked the way they were supposed to. According to the article, Lehman Brothers (LEH) is the biggest loser based on comments they made in a conference call last week.
At around noon today (six hours after the Journal is typically delivered), Merrill Lynch (MER) issued a research report titled, "Hedge reversal drag on 2Q, cutting ests", and the report opened with, "Based on comments made at a conference last week, and continued sluggishness in key markets, we are taking our EPS forecast down for the May quarter and for 2008." One would think that an analyst who focuses solely on the brokerage industry would be a more timely source of information than a newspaper, but apparently in this case the Wall Street Journal scooped the analyst.
Reader Comments (1)
Thus you have post earnings announcement drift and things like that.
email me if you need me to send you some good papers on this subject.
I am not surprised the WSJ editors can be a better source of info than the sell side.
guess who has less conflicts of interest and guess who spends less time marketing and more time doing research
newspaper guys.
good post