Wednesday, May 9, 2012

Why do we pay them?

Today, an analyst from a big firm (a really big firm) downgraded shares of Fossil (FOSL) to neutral from overweight. That's fine...except that yesterday the stock collapsed 27%. One more time, why do these analysts get paid so much money?

But there is good news. Today a different analyst at a different firm upgraded it to from hold to buy.  Doesn't that make a whole lot more sense then closing the barn door after the cow left?

And just to be fair to an industry - some people actually protect their clients. This same analyst cut the stock from a buy to hold in February after a big pop higher.

Kudos to the Benchmark Company.

A lump of coal to JP Morgan.  Oops, I said it.

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