Question: Many market participants believe that sell side analysts are too optimistic
Many market participants believe that sell-side analysts are too optimistic in their recommendations to buy stocks, and too slow to recommend sells. What factors might explain this bias?
Answer to relevant QuestionsJoe Klein is an analyst for an investment banking firm that offers both underwriting and brokerage services. Joe sends you a highly favorable report on a stock that his firm recently helped go public and for which it ...Why would a company pay to have its public debt rated by a major rating agency (such as Moody’s or Standard and Poor’s)? Why might a firm decide not to have its debt rated?A leading retailer finds itself in a financial bind. It doesn’t have sufficient cash flow from operations to finance its growth, and it is close to violating the maximum debt-to-assets ratio allowed by its covenants. The ...A leading oil exploration company decides to acquire an Internet company at a 50 percent premium. The acquirer argues that this move creates value for its own stockholders because it can use its excess cash flows from the ...Two years after a successful public offering, the CEO of a biotechnology company is concerned about stock market uncertainty surrounding the potential of new drugs in the development pipeline. In his discussion with you, the ...
Post your question