A STOCK ANALIST ON WALL STREET CAN BE WRONG ALL HIS/HER LIFE, YET PEOPLE WILL KEEP LISTENING TO HIM/HER.
Here is just one of thousands of examples.
BANCO SANTANDER CENTAL (STD).
On February 24, 2010, “STD” was downgraded by BARCLAY CAPITAL from equal weight to underweight. In other words, sell the stock. “STD” was trading that day at $12.70 a share. Today March 3, 2010, the stock is trading at over $13.75 a share. A gain of over 8% for this week.
According to my opinion, “STD” is a buy at any price below $12.50 a share. The bank’s EPS (earnings per share) is over $1.50 a share. The P/E (price earnings ratio) is about 9. The dividend of 6.75% is fairly secure.
As always, markets are created by buyers and sellers. The buyer will purchase a stock because the investor believes that the stock will go up. Conversely, the seller will sell the stock because he believes that the stock will go down. The challenge for investors is to choose whether to be a buyer or seller