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Rap Sheet

Author:

Perry Rod

Subject:

Analyst Coverage

Date:

04/24/09 at 11:23 AM CDT

 

 

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Sentiment:

Neutral

Collins Stewart Analyst Downgrades Apple and Western Digital

Ashok Kumar, a little known analyst from Collins Stewart, has been making many negative calls as of late.  This morning he downgraded Western Digital and Apple Inc., which may have caused those stocks to fall in the early morning hours on Wall Street.

This week, Kumar also had negative things to say about AMD after its report, and last week, he had negative things to say about Dell's business plans.  Mr. Kumar also stated last week that he thought the likelihood of IBM buying Sun Microsystems was "better than 50/50," before that deal collapsed.  He also downgraded Atheros last month, was earlier "disturbed" about Hewlett Packard's business, and also downgraded NetApp, saying "things have never looked worse," for that company.  Both companies have risen since those statements with NetApp's stock rising over 50%.

In between following many stocks, doing business with clients, and getting attention from the press, perhaps Mr. Kumar's stock picking skills are wavering and deserve better scrutiny.

Many fund managers pay more attention to the details in an analysis than the price targets and recommendations made by the analyst.  But those recommendations do have their effect.  Here at Market Rap, we like to follow sell side analysts who like to be heard, and hold analysts accountable for their quick trigger upgrades and downgrades, in order to measure and discuss their performance.

So look out Mr. Kumar, we have heard you and are now paying attention.  Good luck.

WDC apparently beat both his revenue and eps estimates for this quarter and next quarter.  He downgraded the stock from Buy to Hold after they beat his own estimates.

That makes a lot of sense.

These guys need to be watched by more than just investors.  The SEC should have a division investigating analysts who pull this shady stuff.  It might be legit, but looks suspicious because it's so illogical.


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Author:

Reggie Abaca

Subject:

Analyst Coverage

Sentiment:

Neutral

Date:

04/24/09 at 1:43 PM CDT

his reasoning looks pretty weak ..

 

Collins Stewart analyst Ashok Kumar cut his recommendation on the stock to "Hold" from "Buy."

While the PC supplies market is being buoyed by restocking of inventory that has fallen to low levels, the risk that there will be a lack of ensuing demand -- the true driver of sales growth -- could put pressure on the stock in coming months.

As such, he felt that the stock is more attractive at the lower end of its fair value range of $18 to $24.

 

finance.yahoo.com/ne...026119 .html?.v=1


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Author:

Peter York

Subject:

Analyst Coverage

Sentiment:

Neutral

Date:

04/24/09 at 3:33 PM CDT

I met this guy at an industry dinner. He is not tuned in. The analysts need access to the CEO's and he is probably trying to get an audience with Seagate, clearly the weaker of the 2 companies. That said, the current price for WDC may be OK for now given the industry multiples. But I don't understand the downgrade at this time.


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Author:

Bill Westlake

Subject:

Analyst Coverage

Sentiment:

Neutral

Date:

04/26/09 at 10:55 AM CDT

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