I believe this downgrade is rather weak in reasoning. Sighting only "However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year." and " It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock." They had a few bad weeks, caused by a select few (who in my opinion) should be thrown in jail for manipulation. To me, this "downgrade" has more positive information than negative. If had more money available, I'd be buying on any pullback.
Should have no effect, if investors look at the report and just don't rely on the news headline. If you read my post you will see that I have seen the Analysis. First, you have to know that the report is computer generated. The report is only as good as the information that is put into it. Report states QCOR rated C+ one level below buy. Problem is that the report uses dividend return as a category to rate the stock. They show that QCOR does NOT pay a dividend. QCOR has just declared a .20 dividend. In addition, another category is Solvency. The problem with that is the company has zero debt. If they use a mathematical formula and multiple by zero you get zero. I believe these two points make the report faulted. Last, I heard the company has 116 million cash or short term investments and zero debt. BUY on the dip if any.
Sentiment: Strong Buy
Neither The Street nor Motley Fool have any serious analysts. The Street makes calls just like Cramer - take a look at the chart. If the stock has been declining/choppy - sell. It the stock has momentum - buy. None of these people are serious analysts. No one person (e.g. Cramer) can conduct sufficient research about hundreds of companies to be able to have any kind of reliable opinions. Most sell-side analysts cover no more than 15-20 companies. Most buy-side analysts seriously get to know a fewer number of companies (including their management teams). I used to be one of those buy-siders.