Market Analysts ?

[ryanallan]

What do analysts do ?

i.e. I have been looking to buy some shares in this company, and I see their web page has a list of analysts. Can I call a guy and ask him a bunch of questions or will they charge me for their time ?

[roopi]

Originally posted by ryanallan
What do analysts do ?

i.e. I have been looking to buy some shares in this company, and I see their web page has a list of analysts. Can I call a guy and ask him a bunch of questions or will they charge me for their time ?

No but you can call Investor Relations of the company to ask questions.

[Celica TVS3]

No, don't call the anayst they aren't there to answer questions for you. But as roopi says, you can call IR.

What's the company? I, or someone in my firm, might cover them.

[ryanallan]

ya i was going to call IR tomorrow.
why do they give a list of analysts, and all their contact info, if they arnt there to answer questions ?

any who, the company is daylight resources trust
TSX: day.un

[roopi]

Originally posted by ryanallan
ya i was going to call IR tomorrow.
why do they give a list of analysts, and all their contact info, if they arnt there to answer questions ?

any who, the company is daylight resources trust
TSX: day.un

I haven't seen lists of anyalysts on sights before but it could be just so you know who covers the companies stock so you can see there research. Alot of companies either sell research or offer some sort of insight for free.

[Celica TVS3]

PM Sent.

[ryanallan]

sweet, thanks for the help guys !

[Celica TVS3]

I wasn't able to get to it until this morning. (Penn West reported at 11:30pm on Thusday). But I sent you a failry good overview of the company.

[S4maniac]

uhmmm ... IMHO... analysts are for the most part, paid shrills for a stock (company). The reason they pump a stock is because they or someone they are associated with owns a position. Asking the actual analyst if they like or dislike the stock will get you the published answer.

[Celica TVS3]

^ It doesn't work at all like that. In fact most analysts aren’t allowed to own/buy/sell the stocks they cover. Some shops allow this but analysts aren’t allowed to trade against their recommendations, and on top of that there are time restrictions, i.e. you can’t buy/sell 30 days before or after a report is published.

Analyst aren’t always 'pumping the stock', but they do have favourites within their coverage group; they also have those they don't like. But for the most part an analyst will be more likely to invest time picking up coverage on a good company rather than a crappy one.

If by 'someone associated' you are referring to institutional clients, you're right they own positions in covered stocks. But they are paying (indirectly through trading with the firm) for good (independent and accurate) advice. Moreover, the institutional clients are sophisticated investors, who often have their own research departments, who can cut through bullshit pretty easily. And remember, a lot of clients can make money from timely recommendations in either direction. A timely ‘sell’ recommendation, which prompts a client to take on a short position can make a client (and the firm) just as much as a ‘buy’ recommendation.

Having said that there are some conflicts of interest, if you're interested pick up a book called 'full of bull'. It pretty accurately shows some of the inherent conflicts of interest.