I think its a mistake to “like” analysts – because they’re only spokesbabes giving their opinions about stocks and the market. They’re not the product. I think you must keep your attention on the actual product, not what people are saying about it. Still, I think it’s natural to prick up your ears when an analyst you respect says something meaningful. These are the analysts that I presently like:
Natasha Boyden (Cantor Fitzgerald). Gaining my respect, particularly with her oil and gas and consumable fuels opinions.
Derek Brown (Cantor Fitzgerald). Software stocks. He was grim about eBay before almost anyone else so I started paying attention.
Meredith Whitney (Oppenheimer & Co.). Specializes in Capital Markets. She was right about Citi and Wachovia. I like her, even if I don’t like her message.
I’m nervous about analysts at the big houses right now because the big houses themselves are in trouble. I know its perhaps a leap in logic to discount the word of somebody at, say Merrill Lynch, who has a negative outlook on, say, ExxonMobile, but I can’t help but think there’s a disconnect. I am thinking: you’re working at Merrill Lynch, home of the kazillion dollar write-down, and you’re warning me about energy companies?
For the time being I’m cautious about them. When the markets swoop up again, and their employers are flush, I’ll believe them again.
