April 16, 2010

  • Ever Notice When Your Stock…

    How does a firm (in this case Credit Suisse) cut it’s rating on a stock from Outperform to Neutral, but same day ups it’s share price projections from $5.25 to $5.60?  Man, the things these investment banks do to manipulate the market so that it’s clients can buy in cheaper.  The stock dropped 10% on the downgrade announcement… but shouldn’t it go up on the earnings projection?  Doesn’t make sense as to why they would even downgrade.  

    Wall Street speak:  For our VIP clients that receive stock analysis reports, we’ll put in a downgrade so that you can buy in at a discount since we think this stock is going up within the next 6-12 months.   

    Totally legal market price manipulation.  I wish the SEC would fine investment banks for giving two conflicting projections. 

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