2 Wall Street banks made millions selling the collapsing shares of MoviePass' stock as analyst kept 'buy' rating (how much, politicians)
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Another example of why many don't trust Wall Street.
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While these banks made millions in commission from Helios, research analysts at the two firms kept "buy" ratings on the stock as it slid, advising clients that Helios was a good deal. Neither put a "sell" rating on the stock. Both recently suspended coverage.
One retiree investor told Business Insider he used the analyst coverage as part of his decision to pour almost $190,000 into Helios. His stake is now worth about $240.
If you invested $100,000 in Helios stock on that day in October when Maxim's Kinstlinger initiated coverage with a "buy," your shares would now be worth about $1.85.
One thing I noticed early on was that when the media puts out news its already history and the big money has already traded on it, leaving the individual investor at a disadvantage. Trading on news or a buy or sale rating is among the worst strategy's a novice could fall victim too. One of the many landmines of investing.
Not shocked by the analysts. I am shocked that someone would pour that much money into a stock that was pretty much in free fall all year, apparently based just on analyst ratings. By the time you have a few hundred grand to play around with I'd think you'd have learned that the rare sell rating comes way too late and only after the big money has abandoned the stock.
Another example of why many don't trust Wall Street.
---
While these banks made millions in commission from Helios, research analysts at the two firms kept "buy" ratings on the stock as it slid, advising clients that Helios was a good deal. Neither put a "sell" rating on the stock. Both recently suspended coverage.
One retiree investor told Business Insider he used the analyst coverage as part of his decision to pour almost $190,000 into Helios. His stake is now worth about $240.
If you invested $100,000 in Helios stock on that day in October when Maxim's Kinstlinger initiated coverage with a "buy," your shares would now be worth about $1.85.
Everything said it true, but a casual glance at the financials from 2014 forward would have sent a prudent investor looking else where.
Sales from 2014 - 16: $10.6M, $9.7M, $6.7M.
Gross Profit from 2014: $2.1M, $2.7M, $1.9M
And of course there never was any profit.
I lost a lot of money once when I bought only S&P 5 star rated stocks. Now, I do my own evaluation, and it starts with the Income Statement, Balance Sheet and Cash Flow report issued every quarter as a 10Q.
One thing I noticed early on was that when the media puts out news its already history and the big money has already traded on it, leaving the individual investor at a disadvantage. Trading on news or a buy or sale rating is among the worst strategy's a novice could fall victim too. One of the many landmines of investing.
Yeah it seems the media only starts pumping once upside potential is pretty much over .
They didn’t recommend these “FANG” stocks when they were actually good buys .
Same thing with real estate . They kept telling everyone to avoid real estate and it being risky in 2009-2011 or so even though that was the best time to buy .
Not shocked by the analysts. I am shocked that someone would pour that much money into a stock that was pretty much in free fall all year, apparently based just on analyst ratings. By the time you have a few hundred grand to play around with I'd think you'd have learned that the rare sell rating comes way too late and only after the big money has abandoned the stock.
Yeah , hopefully that $190,000 wasn’t a huge part of his net worth . Didn’t say how much he was worth of course . It does seem like a risky play for a retiree especially . Possible he is an ultra high net worth individual though .
They did this same thing on the run up to the 2008 crash. They knew it was coming but was able to keep it under the lid long enough to dump a good portion of their bad investments.
Nothing was done then (despite the promises there would be something done) so history repeats itself.
If someone else does this, it's fraud. If the investment banks do it, it's known as filling the politicians coffers.
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