How analysts works?

T

tonyzhou

I am really interested in how analysts works. Some of my questions are:

1. Are analysts allowed to trading their own account? Conflict of interest?
2. How to prevent leaking informations? Upgrades / Downgrades really moves the stock.
3. What is the process to publish the report? Where to publish? Where to buy or access these reports? Do they publish estimates information other than I/B/E/S?
4. How websites , like briefing, streetinsider, bizenga, and flyonthewall get the information to publish the news? Automatically or manually? What is the time delay from analyst publishing to the time hitting the main stream news site?
5. Customers of the X company get X's analyst report earlier? e.g., X = Goldman Sachs.
 
If you really want to know how they work, buy "Confessions of a Wall Street Analyst.", he leaves out portions but you will get the gist of how things work. It's a dirty business and most analysts are told when to move their EPS Estimates up and down by the companies they cover. Seriously Dude, buy this book and absorb it because it will change your mind how you view screw-ups like Henry Blodget and the greatest crook Bernie Ebbers little Analyst Jack Grubbman who was bad news. Seriously, buy the book and see if you believe it's possible to be unbiased on Wall Street when the majority of money is made on the Investment Banking side creating major conflicts.

Confessions of a Wall Street Analyst: A True Story of Inside Information and Corruption in the Stock MarketPaperback – May 29, 2007
by Daniel Reingold (Author), Jennifer Reingold (Author)
 
Brahmastra said:
I worked as an analyst for some time.I`d reply to you, i wouldn`t give a flying fook to your attention!I had my salary on a monthly basis down cold.
More...

Not making this a personal issue, Brahmastra, so relax, pls :)

get salary and not give a damn about the recipients of the analysis? People who had faith in qualifications etc., then they lose out big and the families suffer due to terrible anal-ysis ....

Take Enron as an example

all 15 analysts rated it a BUY, but 12 out of the 15 rated it a STRONG BUY when stock had dropped from $90 to $26

http://www.forbes.com/2002/02/27/0227analysts.html
 
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