Talk about taking a position to get attention. As the markets attempt a rebound, Mike Mayo attempts to make a statement in his new position at Calyon Securities.
Remember the days when analysts only had nice things to say? Well, it is about time that an analyst takes the opposite position even if it is simply to seek attention. Perhaps, the most important issue is not the recommendation itself and a potential shift in sentiment but rather the markets ultimate reaction at 4:00 PM - did anyone really care?
We are not here to discuss the merits of Mayo's position - we have to assume that it was well intentioned and well researched. We are here to discuss the motivation and to open up our readers eyes with respect to track records for analysts and the effects of research on the markets.
Is there still a correlation between an analyst recommendation and market sentiment and reaction?
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