To me, the frequent analysts’ appearances on TV are not a very successful strategy. And we’ve seen more of that in the past year than any other time I can remember….analysts might have seen the success of others like Meredith in the past….but these new attempts at stardom did not propel the industry higher. Quite the opposite….the one year return for financials is flat and it’s the worst performing sector.
To use Meredith again as an example, in ‘07 & ‘08 she made good calls but she has made more unsuccessful public analyses lately, than successful ones. And these kinds of public efforts have hurt the industry.
Some might not believe that analysts’ reports affect the industry stock price….to them I suggest to look back at the time when Meredith announced her departure from Opco. If I remember correctly, the stock dropped 20% that day!!
So what is the bottom line?
My view is that it has been proven that frequent appearances are not an adequately robust method to energize companies. And financial stocks are more likely to move further down, than up in reaction to this. Furthermore, most 10 minute interviews are not the right setting to develop ones thoughts. The main problem is that in the limited amount of time, the analyst does not focus his efforts at explaining the issues holistically, in particular the general prospects of his ideas and dynamics behind it, such that one can understand it clearly.