Buy Ratings vs. Burn Rates

from the analyzing-startup-stocks dept

An interesting read in Business Week about analyst recommendations on various dot coms. It makes the point that many still rate most of these dot coms as “buys” or “strong buys” despite the recent slump. Of course, then they talk to the analysts who explain every reason why most of these stocks should be on their “sell” list. It seems that analysts still don’t want to piss off the companies they underwrite. Yet another example of why you should never trust the analysts who underwrote the stock. Also a good example of why analysts shouldn’t always be trusted. They’re human too, and they get caught up in the hype as well.

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