Posted on 23 July 2010. Tags: Equity Analysts, McKinsey, Overoptimistic, Wall Street
According to top consulting powerhouse McKinsey, Wall Street analysts are not exactly prescient: “research shows that equity analysts have been overoptimistic for the past quarter century: on average, their earnings-growth estimates—ranging from 10 to 12 percent annually, compared with actual growth of 6 percent—were almost 100 percent too high. Only in years of strong growth, such as 2003 to 2006, when actual earnings caught up with earlier predictions, do these forecasts hit the mark.”
(Hat Tip: Jordan Roy-Byrne)
Posted in The Trade, Trading
Posted on 16 October 2009. Tags: Akamai, Galleon Group, IBM, Insider Trading, Intel, McKinsey, Moody's, Polycom, Raj Rajaratnam
MarketWatch reported: “
Galleon Group’s billionaire founder, Raj Rajaratnam, was charged Friday in a sweeping insider-trading case, according to court documents filed in Manhattan by federal prosecutors and the Federal Bureau of Investigation.”
Unlike Martha Stewart’s insider trading, this scheme better exposes the vast network of cheaters who report to hedge funds for Don Corleone type rewards: “The charges against Galleon claim the firm was connected to a network of informants — including executives and employees at Intel (Nasdaq: INTC), IBM (NYSE: IBM), Akamai (Nasdaq: AKAM), Polycom (Nasdaq: PLCM), McKinsey and rating agency Moody’s Corp.(NYSE: MCO) — who exchanged inside information.” (MarketWatch)
Surprised? If so, you are radically disconnected from Wall Street. However, given how toothless and weak the SEC has become in the last decade, punishing insider trading has become as rare as bipartisanship in Washington.
Too bad Rajaratnam wasn’t a politician. In that case his behavior would have been completely legal.
Want to read more Scoops you won’t see in the mainstream media? Try these posts:
Do Lawmakers Legally Insider Trade?
Heads Banks Win, Tails Taxpayers Lose: JPMorgan Cashing In
Bloomberg Editor-in-Chief Matthew Winkler Says Taxpayers Have Right to See Fed Books
The Federal Reserve’s Secret Lending of Public Money is Under Attack
Stocks
IMB
INTC
AKAM
MCO
Posted in Economy, Featured, The Scoop
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