There was a time when analysts on Wall Street were the right Stars. The most influential of their craft moving with their studies, share prices, certain debates about the future of the company and completed, in some cases, even the career of top managers. This is especially true for the augurs stood with their assessment against the General Trend.
Freelance writer in the business.
F. A. Z.
So realized Meredith Whitney, one in front of the financial crisis, rather unknown to the analyst, to shorten in October 2007 at an early stage that Citigroup may be forced to have their dividend. Your sell recommendation for the shares of the big Bank at the time, whose course under severe pressure, and it was not long until the then CEO Charles Prince lost his job. His successor reduced the dividend, and Whitney made it the following year on the title page of the business magazine “Fortune”.
In the now for almost ten years of sustained equity bull market, it has become to analysts silent. Their influence is decreased because the stock market has been supported, in General, of extremely low interest rates. Index-plants dominated, and the selection of individual stocks was becoming less and less important.
share price of General Electric finished descent
But there are also exceptions, such as Steve Tusa, the forecast in the services of the investment Bank JP Morgan Chase the first to the demise of the proud American industrial icon General Electric (GE). Tusa turned out to be two and a half years as the only Analyst earnings forecasts and, later on, the dividend from GE in question. At that time, the shares of Siemens were trading competitors to more than 30 dollars.
In the last trading week, GE had fallen to under 7 dollars-a loss of almost 80 percent. So weak, the shares traded recently during the financial crisis, which had broken the conglomerate, whose division, GE Capital was one of the largest American financial institutions, almost the Neck.
In the last week weakened Tusa, given the sharp drop in the share price of his critical attitude. He took back his recommendation to Sell and GE is now a “market-neutral” development. In addition, JP Morgan, GE line of the list with shares for which the Bank determines short sales (Shorts), so bet on further falling prices. That was enough for a strong recovery of the share price. On Thursday, he shot more than 7 percent in the height. Since then, the course has yielded a total of slightly listed, but clearly more than 6 dollars.
GEN. ELECTRIC — — (–) Frankfurt tradegate exchange Xetra Switzerland, Paris, London long & SchwarzStuttgartNYSEWien 1T 1W 3M 1J 3J 5J For detail view
Between Tusas first “sell” recommendation and the recent report by the horror years for GE: two-in-chief exchange, a shrink rate that seemed to get thrown out from the standard values-Index, the Dow Jones and, finally, the reduction in the dividend, a cost-saving measure, for many American retail investors long years is unthinkable.