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During a TV interview an analyst recently stated that he can't say sell for fear of upsetting the investment bankers. He said that his report might suggest that now is a good time to raise cash but what he is really saying is sell. What are other euphemisms that analysts use when they want to say sell?
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mawhinney asks,

During a TV interview an analyst recently stated that he can't say sell for fear of upsetting the investment bankers. He said that his report might suggest that now is a good time to raise cash but what he is really saying is sell. What are other euphemisms that analysts use when they want to say sell?

"source of funds"

"we prefer other opportunities in this sector"

intercst
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I figure that if an analyst issues a recommendation other than "buy", he's saying there's a better place for my money.

(Whether I believe him or not is a different question.)
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Mawhinney asked: What are other euphemisms that analysts use when they want to say sell?

From Sound Mind Investing article*, "When 'Buy' Really Means 'Sell'":
...some analysts seem unwilling to ever say sell. For example, one of prominent analyst Mary Meeker's darlings, Yahoo!, has plummeted from $237 to $17. Yet she has maintained an outperform rating the entire time, even now predicting it will rise to new highs.

From Fidelity Active Trader article**, "Analyzing the Analysts":
As of September 2001, First Call says that of the 28,000 analyst recommendations on 6,700 companies in the U.S. and Canada that they examined, 27.5% were strong buys, 36.7% were buys, and 34.3% were holds. Only about 1.5% were sells or strong sells. This disproportionately bullish sentiment represents only a small change from the March 2000 recommendations.

I'd have to say these sell euphemisms include "Strong Buy", "Buy", "Accumulate", "Outperform"....

Cheers,
Harry


* http://www.soundmindinvesting.com/vsection/v_newsletter/0106/level3.htm
** http://services300.members.fidelity.com/atn/content/archive/print_article/1,1155,890,00.html
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What are other euphemisms that analysts use when they want to say sell?

"Accumulate" and "hold" are the usual suspects.

sydsydsyd
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None of them has the cajones to say....



Stick your head between your legs and kiss your @ss goodbye......
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Yes, I always understood "hold" to mean "sell".

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It doesn't matter in the least what they say. You don't know their motivation (pump and dump, underwriter, etc.). You don't know their code (buy, strong buy, long term hold, etc.) And they don't know what the market will do anyway (temporary correction, new bull market, secular bear, cyclical bull, etc.) So why listen to them at all?

nmckay
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Analyst talk translated:


Buy= Company has serious problems- e.g. eroding market share, falling profits (if any). You should probably cut your losses and get out now.

Hold= Company has no chance of making a profit this decade, if ever. If you own it, your screwed.

Sell= company is bankrupt, stock sells for less than $1 and plunging fast, Corporate Board is under indictment (enron, kmart). If you own it, your new broker's commission will be more than the stock will bring-your old broker, who convinced you that iVillage.com was going to be the next GE, has left town with no forwarding address.

Strong Sell- Stockholders are advancing on the Corporate HQ with torches and pitchforks. CEO just committed suicide. Board of Directors was last seen taking a one way flight to Bolivia. If you own it, you should strongly consider following the CEO's example (after torching corporate HQ, of course).

Strong Buy- anything that doesn't fit the above.

jb

...who doesn't listen to the analysts much.
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Analysts' recommendations remind me a little of injury reports in the NFL. A "probable starter" has never been in better shape; a "questionable starter" didn't even know he was on the injury report; a "doubtful starter" has already been written into the starting lineup; and a player who is "out" will see significant playing time. You just need to know the (not so) secret code. <g>
-Chester, who no longer reads either analyst or injury reports other than for the pure entertainment value.
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