A few words about yesterdays Outperform by Wells Fargo.
Yesterday Analyst David Wong reiterated an Outperform rating on the shares of Intel.
According to TipRanks Add-On here are a few interesting statistics that they collected:
1) his average return on each of his stock recommendations (compared to the S&P500) is -4.7%
2) out of 27 recommendations of his only 13 outperformed the market
3) he is ranked pretty among other analysts.
TipRanks is a browser add on that automatically displays financial experts statistics when reading relevant texts so that individual invesors will know if they should listen to an analyst or not..
Many of the analysts have a high rating (4- or 5-star) on their Intel calls. Virtually all of them are within the Intel forecast range and rarely move outside the Intel +/- $500mil revenue range. Their value added seems to be the translation of that revenue into profits and profit margin. For the last two years, Intel has beat their mid-point revenue and profit results. The analysts have simply said "Oooops! Intel did better than expected but the future for them looks dim." When they change their Intel revenue forecasts, they change it by $100mill and the new value is still within the Intel range but they reiterate or add more bad news.
This game allows them to spin their negative and also keep a high rating.
[This post is from someone shilling for TipRanks, just like Dnenni used to shill for his site. A three page message ID which means there is some hidden agenda...]
[Who needs an analyst to tell them about Intel these days? Just look at what a disaster ARM has on its hands with 20nm planar and how incredibly long it will be before they can move to volume production on FinFET. ARMs fabrication is collapsing while Intel's is getting stronger and stronger. You don't have to be smarter than a 5th grader to see how this is going to end. Just smarter than a Chump Street analyst...]
Clearly you know more than the laymen investor about Intel's technology. but most of the individual investors are exposed to online recommendations in financial websites..
The reason i like/use TipRanks is because i can relate to their vision which is to show how good are people that recommend others what to buy/sell without being held accountable for their influence.
Me like many others lost money after following online investment tips. and its comfortable having an Add on that shows me who i can trust - especially now when its free.
You can see some analysts have amazing statistics (when i saw Amazing i mean ~75% positive picks) and some are just terrible.
Since they have a browser Add-On it is very convenient since they appear only when i read an article with an analyst name. its kind of a financial accountability engine. i got friends that work their (friends of friends), and i really like how they assist the individual not to get into traps.
i think its needless to say that some analysts are biased and when they say "Buy" its because they want the stock to climb.
From what i heard they will start supporting bloggs/message boards as well so you can see how your statistics and my statistics are.