So much for the sustainability of today’s in the green PN stock price
It followed the overall market retreat. 10% gain evaporated during the day.
Yes, not surprising when the market overall was down significantly.
PN’s price was up today before the market started deteriorating. But, there is always next week! 
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This just in:
http://www.webbreakingnews.com/2016/05/13/compass-point-lowe…
Not quite sure what to make of it. If the “consensus” price target is $12.25, that still bodes well, at least for me, ie- still a decent upside. But I don’t seem to be able to discern the reason Compass Point downgraded the stock.
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I give no weight to the analysts buy/sell ratings. They always seem to get it wrong. I’ve come to believe they are just brokerage company tools to try and influence the price for their own profit. Ie. They want the price to come down so they can buy low.
If institutional buying is starting I would think they would want to get the best price before raising their ratings.
Ever wonder why no analysts keep track of their accuracy of recommendations and report it publicly? It would be extremely easy for them to do so.
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“Ever wonder why no analysts keep track of their accuracy of recommendations and report it publicly? It would be extremely easy for them to do so”.
Good point, F1Fun.
I used to pay a lot of attention to analysts’ buy/sell ratings, but not so much anymore. The Compass rating just had me curious.
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Analyst’s may not boast their records but there are those who do.
http://www.starmineawards.com/awards.php?r=1
Rob
I was just thinking about this the other day. I’m still somewhat new to investing, but it is really difficult for me to understand why so much these “estimates” seem to have so much weight when the analysts themselves apparently have zero accountability.
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…it is really difficult for me to understand why so much these “estimates” seem to have so much weight when the analysts themselves apparently have zero accountability.
People trust “authority.” You see it in every walk of life. For Catholics the Pope is infallible but he wasn’t before he was invested with the title and was just a Cardinal. That is just one extreme example but you see it in academia where you have to pass a “peer review” and you are only right after the experts say so. One day I dared correct my dad and got a slap on the ears for my efforts. How could I dare question his infallibility? It gives people a sense of security to listen to authority.
Louis Navellier, an investor advisor I respect (he helped me make quite a bit of money) puts a lot of faith in “surprises” which beat analysts estimates. It’s not so much about the analysts themselves but about how the crowd will react to the results as compared to what the “experts” said would happen.
You have to understand that stock prices in the long run are controlled by performance but in the shot term they are driven by market sentiment. That’s the essence of what Ben Graham meant when he wrote that in the short term the market is a voting machine but in the long term it is a weighing machine
https://www.quora.com/What-does-Benjamin-Graham-mean-when-he…
http://news.morningstar.com/classroom2/course.asp?docId=1429…
If Ben Graham was right then it makes little sense for an investor to worry about the daily ticks on the stock price chart. On the other hand, if you are a trader then these ticks have valuable information if you know how to read them.
Denny Schlesinger
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If Ben Graham was right then it makes little sense for an investor to worry about the daily ticks on the stock price chart. On the other hand, if you are a trader then these ticks have valuable information if you know how to read them.
I agree, Denny.
In addition, a point of conflict/confusion(?) for me has been that I tend to follow the MF philosophy that one or 2 earnings reports (good or bad) do not necessarily determine the fate of a given company’s share price; whereas on this board my perception is that each earning’s report is hugely important. I suppose the answer is to analyze each earnings report to determine if a pattern, good or bad, is either changing, materializing, or what have you.
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