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14 Channels and Nothing On

A Nyquist portfolio company reported earnings recently. It’s a small market cap tech firm, <$500M.

I am now the proud recipient of 14 different sell-side research reports, freshly printed, sitting on my desk. Many Weyerhaeuser (WY) pines died to bring me this information. But unlike the information obtained by the Bothan spies, the information sitting on my desk is without exception, worthless.

Why do 14 firms to all cover the same company but don’t try to differentiate themselves in any meaningful way? Out of the 14 reports, all but 1 have either market perform or outperform-like ratings (everyone uses their own catchy term for buy/sell/hold these days). The Sell report is the only one with any differentiated information, and the only one that sticks it’s neck out on the line.

What a waste.


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  1. Isn’t this just a mirror for blogs? 13 of those reports will be simply ‘me-too’s based on a lead blogs opinion, there will likely be two opinions, just that one gained more traction.

    I read your blog because you express an opinion on things that interest you. Maybe I agree, maybe I disagree, maybe I have not a clue WTF you’re talking about, but I accept that it’s *your* opinion on subjects that are important to *you*.

    But I see the typical blog subject is driven by a lobby or PR company setting an agenda, followed by a million sheep-blogs digesting it and rechurning it. Same thing I guess is happening with these buy-sell reports, they’re churn and re-churn from somebodies original opinion.

    But I thinks thats OK, I migrate from blog to blog, and I notice that over time the bookmarks in my blog folder point to the original sources of the stories.

    So for example, I read BoingBoing.
    Over time I’ve started to read a blog BoingBoing quotes:
    and over time I’ve come to realize the magazines and articles bldblog quotes, and read those instead.

    So you read 14 reports, I reckon over time you’ll recognise say 8 are simply ‘me-too’ people and discount them, and slowly you’ll sift the gold from the silt.

    Well thats just my opinion, or maybe I’m just rechurning someone elses.

    Posted by Smile | October 20, 2006, 4:01 PM
  2. A good example of a pure play no rehashed BS site is Martin Geddes

    It can be obtuse, but it is always original.

    After I wrote the post I realized that by bagging on sell side research, I wasn’t adding anything new to the topic. Pot calling the kettle black and all that.

    Posted by Andrew Schmitt | October 20, 2006, 4:12 PM
  3. I’ll add to the growing pile of discontent.

    I used to work for a similar firm, high tech,

    Posted by DC | October 20, 2006, 10:00 PM