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Old 08-10-2018, 10:25 AM
 
Location: Los Angeles (Native)
25,274 posts, read 15,373,030 times
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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.

https://www.businessinsider.com/wall...-shares-2018-8
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Old 08-10-2018, 10:39 AM
 
Location: In the reddest part of the bluest state
3,251 posts, read 1,239,223 times
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More to the point is the banks likely held shares in their portfolios and needed the time to dump it.
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Old 08-10-2018, 10:40 AM
 
26,686 posts, read 9,072,282 times
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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.
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Old 08-10-2018, 10:46 AM
 
797 posts, read 467,127 times
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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.
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Old 08-10-2018, 10:48 AM
 
Location: NE Mississippi
13,668 posts, read 8,577,038 times
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Quote:
Originally Posted by jm1982 View Post
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.

https://www.businessinsider.com/wall...-shares-2018-8
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.
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Old 08-10-2018, 10:50 AM
 
Location: Los Angeles (Native)
25,274 posts, read 15,373,030 times
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Quote:
Originally Posted by phma View Post
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 .
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Old 08-10-2018, 10:52 AM
 
Location: Los Angeles (Native)
25,274 posts, read 15,373,030 times
Reputation: 12120
Quote:
Originally Posted by SoCal25 View Post
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 .
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Old 08-10-2018, 10:55 AM
 
51,940 posts, read 41,798,494 times
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There is a lot of propaganda out there with regards to stocks, bonds, funds, gold, oil....you name it.

If you're dumb enough to fall for it, that's buyer beware.

I do love the little "retiree investor" touch that Business insider added to the article.

Guy poured 190k into a single speculative stock so he's either insane or has a net worth that's probably 10million.
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Old 08-10-2018, 11:04 AM
 
Location: Los Angeles (Native)
25,274 posts, read 15,373,030 times
Reputation: 12120
Quote:
Originally Posted by Mathguy View Post
There is a lot of propaganda out there with regards to stocks, bonds, funds, gold, oil....you name it.

If you're dumb enough to fall for it, that's buyer beware.

I do love the little "retiree investor" touch that Business insider added to the article.

Guy poured 190k into a single speculative stock so he's either insane or has a net worth that's probably 10million.
True there is a lot of propaganda.

Yeah retiree investor could mean it was his life savings or he could be worth $10 million plus like you said.
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Old 08-10-2018, 11:09 AM
 
79,091 posts, read 33,578,351 times
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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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