Let us create a 3d Digital eBook for you! DigyCat.com
Have Analysts Gotten Honest?
It caught my attention when I heard an analyst on a popular financial news program tell investors to sell a stock because too many analysts liked the company, citing the fact that there were no sell ratings.
It seemed perfectly logical to me that analysts wouldn't be telling investors to sell 3M (MMM), which has one of the most consistent positive earnings records in the history of the stock markets. But being suspicious of conflicts of interest between brokerage firms and analysts I decided to do a bit of fact checking anyway.
While the stock did not have any sell ratings at the time of writing, there were quite a few hold ratings. Now I feel compelled to diverge here and say that the hold rating seems quite illogical to me. If a stock is good enough to hold it's good enough to buy, and vice versa if you wouldn't want to buy it then you shouldn't want to hold on to it either.
As it turns out, the average analyst rating for 3M was only slightly and insignificantly better than the average for all stocks in the Dow Jones Industrial Average, of which the company is a component.
But what was most interesting about the ratings on Dow components was that, despite numerous and serious legal problems, AIG (AIG) was tied with General Electric (GE) and Du Pont (DD) for the third best rating, only bested by Citigroup (C) and Microsoft (MSFT). AIG was actually more highly recommended by analysts than J.P. Morgan Chase's (JPM) and American Express (AXP).
This didn't do much for my confidence in analyst ratings.
So I dug a little deeper looking at the more statistically significant S&P 500. What I found was that companies in the index with the worst revenue performance did actually carry more sell ratings than companies with the best performance.
At least analysts were using the sell rating, something they seldom did in the past.
There was, however, a significant bias towards the neutral 'Hold' rating for all stocks indicating reluctance on the part of analysts to commit to buy and sell recommendations.
Mark Mahorney is a freelance financial writer for hire.
Investing - Google News
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Success Trading: More Basic Terminology for New Traders
One important aspect of trading the markets is to understand how to feel it's overall pulse. In the stock market, this is measured by measuring the movements of selected stocks across various sectors to let us know how the market is doing in general.
Investing in World Markets
There are many different ways to invest in world markets: stocks, bonds, mutual funds, options, commodities or currencies. Sometimes people refer to these options as investment vehicles (or method of investment).
HYIPs Investments or Scams?
High Yield Investment Programs (HYIPs) appear at first to be the secret to unlimited wealth and fortune, but as you can guess that quickly changes. However, I have found myself still using them in a very limited fashion as a generator for my digital currency exchange.
Love The Thrill of Risk? Invest in an Annuity!
With the stock market in steep decline, people are looking for safe places to invest their savings. Many banks and investment companies are pushing annuities.
Investing Pointers for Neophyte Investors
If you know next to nothing, how do you go about the business of investing? The first thing you need to know about investing is, how much do you really know? If its' not much, then you will need to read extensively to educate yourself.To become well-informed, you should read up on the basics.
Moving Average Convergence Divergence ( MACD ) Charts
The Moving Average Convergence Divergence charts, or MACD charts for short, are a technical indicator that is derived from the more simple moving average.The MACD charts are oscillating indicators, meaning that they move above and below a centerline or zero point.
Profitability And Stock Turn Rate
The inventory of the typical store represents the largest single element of its total assets. The sale of goods from this inventory is the merchant's chief source of operating profit.
Let's first understand what maniacmeans. According to Webster a maniac is "mad;raging with madness; raging with disorderedintellect".
College Savings Plans - Are They The Best Choice For My Child?
College Savings Plans - are they the best choice for my child?College Savings Plans, also called Section 529 plans, are one of the best ways to save for college because they offer:- Tax advantages- A variety of investment options- Flexible contribution options- Parental control- Little impact on eligibility for need-based financial aidTax advantagesInvestments in 529 plans are usually exempt from federal taxes. Earnings are tax-deferred and are not subject to capital gains taxes.
Just Say NO to Your Stock Broker
We have all heard that slogan that started back when Nancy Reagan was in Washington. It was all about drugs.
Retire Dollar Smart
Jim Miller is a registered investment advisor. This means that he is not beholden to a particular brokerage or financial institution.
Art Investing for a Financial Future
When we think of investing we probably conjure images in our minds of the New York Stock Exchange, suited stock brokers making deals, bonds and treasury bills, and all manner of financial matters. The last thing we probably think about is art.
Investing Online Has Its Rewards: Find Out How To Take Advantage Of Them
Computerized investing. Online investing.
Beta Factors: How They Can Be Used In The Current Situation
Ever since the turn of the century, world stock markets have been very volatile. In other words there have been significant movements (up or down) in share prices.
Creating a Financial Future--Putting Your Plan Into Action Part 2
Real Estate can be a useful tool for investing. The simplest real estate investment is not truly an investment, but a cost-reduction - that is owning your own home.
Sell Discipline for Investors: Importance and Execution
Investors usually don't have an aversion to buying an asset. The real gut wrenching decision is when - and if - to sell.
Wit and Wisdom on Money, Wall Street and Success - Part #4
Can you concisely summarize your investment philosophy in a few sentences? My experience is that most people can't. The quotes that follow are diamonds that offer a real powerful education in the world of Risk Management.
Going Against the Conventional Investment Wisdom
First of all, I want to give everyone the disclaimer that I am not a registered financial advisor and I don't play one on TV. Therefore, I cannot legally provide financial advice and I will not do so.
Help with My Annuity
The cries are heard from the distance, "I need help with my annuities." Nothing has changed.
"Financial planners are like dentists: they may occasionally inflict pain, but in the end, you will be better off for following their advice!"Whoever wrote these lines must have either been a financial planner or someone who relied heavily on planners for finance management. We all know that planning our finances is vital.
MyIdeal Domain Is For Sale - $8,000 For Enquiries eMail Us
© www.MyIdeal.biz - 2012