Sterne, Agee & Leach made a bold call early Wednesday morning. They predicted Jos. A. Bank (JOSB)'s earnings would rise and they loved the shares at the current $41.63 price. As Will Shakespeare’s Hamlet once said, “Ay, there’s the rub.”
As it turned out, JOSB had already reported, and Reuters had broadcast JOSB’s much better than expected earnings and same store sales. Their shares were up 13.5% in premarket trading.
JOSB had a gap opening at $48.00 – up $6.37 or 15.3% from Tuesday’s close. Nobody could buy the stock today at anywhere close to the price where Sterne, Agee & Leach will take credit for putting on their recommendation.
Anyone silly enough to act on their research blurb by buying at the open was down 1.17% by 4 p.m.
Why did Barron's lend their good name to this deceptive press release?
The day’s range was $47.29 to $49.48 with the intra-day low coming with just minutes to go. The chart speaks for itself.
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