I've seen this happen every time (and I'm not singling out Susquehanna)....
Does anyone know or can someone explain why whenever ANY analyst from ANY obscure house, regardless of reputation, issues a downgrade everybody else jumps aboard and the stock goes down?
Are all analysts and brokerage houses members of some secret fraternity where when one issues a downgrade they all support the analyst issuing the downgrade?
Or is this some sort of signal for them to sell a small portion of their shares (it becomes a huge amount collectively) to be able to buy back more later on at a cheaper price to be able to sell to their clients at a much higher price after one of them signals the others with an upgrade?
It's crazy. Within the investment community there doesn't appear to be any room for contrary opinion and they all seem to support one another in spite of some continuing to stick with Buy or Strong Buy opinions.
Banks & brokers all talk to each other daily. They make up shill companies, otherwise known as "Nominees" and they make lots of money with OPM. It's been this way for years. What do you have going for yourself? maybe nothing more than this message board.
The market is basically a herd. There are not alot of independent thinkers. Within the overall market herd there are also smaller "subherds" if you will. Analysts have their own little herd. When one makes a move he can spook the others into following for the simple fear of being left alone. This also goes for mutual fund managers, stockbrokers, etc....
>> When one makes a move he can spook the others into following for the simple fear of being left alone. This also goes for mutual fund managers, stockbrokers, etc.... <<
Yeah but how do you explain that for companies where tens of millions of shares are traded daily?
And why would they follow along (in INTC's case) where one analyst's opinion is based on the premise that pc's are dinosaurs, few people will buy them anymore and everyone is migrating to mobile computing?
The whole premise is absurd in that everyone will still have a home pc and companies will still provide their employees with laptops & desk pc's.
It's like saying that nobody will have land lines anymore because everyone has a cell phone. Not many are about to cut the cord completely and not many are about to toss out their pc's and use a 4" screen and mini keypad to do much more than text, e-mail and pull up some basic info about news, sports, weather, and financials.
I can't imagine watching a 2+ hour movie on a 4" screen.