Why do biz journalists still quote analysts like this?
TheStreet.com’s Marek Fuchs criticizes a recent New York Times article in his Business Press Maven column for quoting an analyst who has a “buy” rating on stocks in which he is critical of in a quote.
Fuchs wrote, “Make no mistake about it: The small item is representative of something the business media, after all we’ve been through with Wall Street analysts and their machinations, still don’t get. And I cannot let investors get misled in any way. So the small item, all by its lonesome, earns The New York Times the dreaded Business Press Maven ‘Back of the Hand’ award.
“While writing of the difficulty many video-game producers like Electronic Arts and Activision are currently having, the Times talks to an analyst:
“‘There are more industry concerns than ever, and that’s what you’re seeing in the stock prices,’ said Justin Post, an industry analyst with Merrill Lynch. And yet, underscoring the complexities of assessing the industry, Mr. Post has a buy rating on shares of two of the major publishers…’
“Oh, won’t God ever grant The Business Press Maven tender mercy from these Wall Street analysts and the wool they pull over people’s eyes? I thought all the recrimination and renumeration in the wake of the analyst scandals that sprung (or seeped out) from the 1990s would set things straight, but what do I know?”
Read more here.