1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Dr. Paul Price
Dr. Paul Price
Articles (500)  | Author's Website |

A Typo, or Intentional Cheating?

December 22, 2012 | About:

Wall Street Cheats – Don’t be fooled

Readers of mainstream financial publications expect what is printed to be accurate. This should be especially true when a brokerage firm is putting out a specific buy/sell opinion that is priced and dated.

The Dec. 22, 2012 issue of Barron’s illustrates how firms can pad their performance numbers by ‘past-posting’ recommendations after a stock has already moved up.

Here is a look at exactly what was published. The column is dated Dec.22, but the "Outperform" rating claims to have been made on Dec. 20, 2012. Robert W. Baird & Co. really liked Sealed Air (NYSE:SEE) at $15.21 per share.

1689877088.jpg

I found only one itsy bitsy problem with that. SEE had a weekly range (Dec. 17 to 21) from a low of $16.13 to a weekly high of $17.36. Despite Friday’s sell-off SEE closed the week at $17.35.

How, then, could Baird & Co. have put it on the buy list at $15.21? Give them the benefit of the doubt and assume they put out their research recommendation after the close on Dec.19 but prior to Thursday’s opening. Sorry, it closed at $17.23 on December 19th.

434412161.jpg

Robert Baird & Co. will probably take credit for a very nice $2.14 per share (+14.07%) fictional gain for the first day following their claimed, well-timed buy at $15.21.

Why would Barron's complicate matters by letting readers that it didn’t happen?

I’ll be waiting to see if Barron’s or Baird & Co. publishes a correction. I won’t be holding my breath, though.

About the author:

Dr. Paul Price
http://www.RealMoneyPro.com

Visit Dr. Paul Price's Website


Rating: 3.6/5 (16 votes)

Comments

AlbertaSunwapta
AlbertaSunwapta - 3 years ago
I love these 'outings'!

Please leave your comment:


GuruFocus Mobile App


User Generated Screeners


1946DCF ROC price change one yr
1946DCF ROC
DBrizanmga beater27Jul2016
DBrizanmga beater
DBrizanBlank 26Jul2016
DBrizanBlank 27Jul2016
DBrizanUSA high quality
DBrizanCDN high quality
DBrizancdn hi quality27Jul2016
DBrizancdn hi quality

Select portfolio(s):

  • Loading...

Why you are interested?

Your selection and notes will be stored in your portfolio.

Login to add portfolio
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK