How far can analysts push the boundaries? This one was shameful
Analysts keep finding new ways to deceive the public and inflate their track records.
The latest example needs to be exposed because it involved alteration of a chart that was then republished on Barrons.com.
Here is an excerpt from Barron’s "Hot Research" segment dated Oct. 23, 2014. It quoted a Raymond James analyst who claims to have upgraded Tractor Supply Company (TSCO, Financial) on Oct. 23, 2014 at a price of $61.30.
TSCO did close at $61.30 as of 4 p.m. yesterday [Oct. 22, 2014] but surged much higher in after-hours trading that day following the announcement of much better than expected earnings.
Tractor Supply gapped up to $68 on the opening on Oct. 23. It never changed hands below $67.85 all day long.
How, then, was Raymond James able to take credit for its upgrade at $61.30 per share? Who produced the misdated and time-stamped chart that was sent to Barron’s for publication?
There is a big percentage difference between recommending a stock at $61.30 or $68.00. The first available TSCO trade came at a 10.9% premium to the price quoted in the upgrade notice.
Barron’s footnote indicates that all prices were correct at the time research reports were issued. Tractor Supply did not trade near $61.30 on Oct. 23, 2014. Here is what they have to say about that topic…
A major financial publication, owned by Dow Jones & Company, should certainly have been aware of the facts. It is a shame they allowed a false claim to slide intentionally, or unintentionally, into print.
The news service MarketWatch actually released a news blurb that attributed Thursday's early jump in TSCO to Raymond James' upgrade. That was certainly not the case as most of the stock's rise occurred after hours the day before.
Note: Raymond James had rated TSCO as "Market Perform" from Jan. 1, 2014, until today's upgrade. Even after Wednesday's sparkling gain Tractor Supply had underperformed the broad market this year.
