Stock analyst coverage initiated at "neutral" - wh

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gsabc · #1 Post by **gsabc** » Tue Apr 22, 2008 10:05 am

I mean, what's the point of covering a stock for analysis and announcing it to the world, when you're essentially saying "If you own it, don't sell and if you don't own it, don't buy"? Either pick or pan, don't say "Eh!"

MarleysGh0st · #2 Post by **MarleysGh0st** » Tue Apr 22, 2008 11:35 am

If the analyst is impartial, wouldn't you expect most stocks to be "just average"--not really outstanding buys or sells?

And I'm curious, is this a stock you already own or one you're thinking about buying? I'd bet the former.

gsabc · #3 Post by **gsabc** » Tue Apr 22, 2008 11:46 am

MarleysGh0st wrote:If the analyst is impartial, wouldn't you expect most stocks to be "just average"--not really outstanding buys or sells?

And I'm curious, is this a stock you already own or one you're thinking about buying? I'd bet the former.

Yes, I get headlines about stocks I own, and "initiation of coverage" is often one of them. But I never see the story behind WHY they initiated coverage. You usually get one for upgrades or downgrades, but not for initiation. Are they expecting movement? Why do they think this stock merits watching over the thousands of others out there? That's especially curious when they're not recommending or unrecommending it, which is the case here.

Bob Juch · #4 Post by **Bob Juch** » Tue Apr 22, 2008 11:49 am

gsabc wrote:
MarleysGh0st wrote:If the analyst is impartial, wouldn't you expect most stocks to be "just average"--not really outstanding buys or sells?

And I'm curious, is this a stock you already own or one you're thinking about buying? I'd bet the former.
Yes, I get headlines about stocks I own, and "initiation of coverage" is often one of them. But I never see the story behind WHY they initiated coverage. You usually get one for upgrades or downgrades, but not for initiation. Are they expecting movement? Why do they think this stock merits watching over the thousands of others out there? That's especially curious when they're not recommending or unrecommending it, which is the case here.

Probably a client with a large holding asked them what they should do.