The Analysts Are Wrong

from the what-do-they-know? dept

Red Herring has an article explaining why most sell-side analysts are way too optimistic. Most of their models for determing proper P/E ratios and such don’t take into account the fact that the economy isn’t growing as fast as it was over the past five years. The article paints an interesting picture of the way sell-side analysts work in determing how a stock should be valued. If you always thought it was pure guess work with a little hocus pocus thrown in, you wouldn’t be that far off.


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Comments on “The Analysts Are Wrong”

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4 Comments
sb says:

Re: No Subject Given

Just another Off topic note, about techdirt corporate……what kind of firm PAYS someone to help their stupid employees surf the web and read news? I mean comon, its great that it supports techdirt, my favorite website, but if techdirt came across that, Mike would RIP it…..step back….lets see,. they pay us to help their lazy employeess surf and waste time in a more efficnet manner……please spare the rebuttal, you are too biaed, since its in your own interest, to see the hilariry of the situiation ,,,yea yea tailored news,,,important breaking events in their industry,,,,,people dont need to be in tune,m,,they need to do their menial jobs, not surf the web……but good plan to suck money from idiots……

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Mike (profile) says:

Re: No Subject Given

Close that barn door after the horse has fled.So, analysts are wrong and biased? Notice how there are 50000 of these articles NOW, and ZERO before the NAZ crash. So pointless & academic. Any moron can write this NOW.

Good to see you actually read the article before opening your mouth. The article says nothing about bias. It just talks about how they determine valuations, and why the method doesn’t work right now.

It is a good point if you had said “they never worked” because they were just as idiotically wrong back when the economy was good as well. It is still an interesting article, though, in that it seems to point out in good times or bad, analysts never seem to stop to get the big picture.

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