Sell Side Analysts...What do they do?

21 Aug 10:50am
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Somehow I'm constantly surprised at what the sell side analysts do and don't focus on. Listening to the BKS Q2 call this morning there wasn't a single question about Borders (BGP) (fresh topic considering there was an article in the WSJ last week about it) and not a single question about the announcement of the CEO of Barnes & Noble.com (BKS) resigning two days ago. All the street wanted to focus on was what the EPS for the year was going to be so they could slap a multiple on it and write a two paragraph note summarizing the press release.

Yes it's highly likely that BKS management would have sidestepped the questions but the questions should have been asked anyway. You never know but maybe they would have given us a small bit of information in how they sidestep the questions or just the tone of their voice. Hey look even Colonel Jessup was dying to tell the truth. What's even more shocking to me is when the sell side analysts are asked some of these question before the call in a private conversation and still don't follow up on it.

It's a real shame but in the end I guess it's my fault...I shouldn't be surprised!

Earnings transcript


Disclosure ("none" means no position): Long-BGP, None-BKS

Todd Sullivan's- ValuePlays

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About

ToddSullivan

A Massachusetts based value investor, I look for companies whose current valuation is at a discount to their true value. When I purchase a stock, my typical holding period is several years. I consider buying a stock purchasing a piece of a business. I am confident once I make a decision to buy that eventually the market as a whole will recognize the true value of the business and value it accordingly. It may take 1 month, 6 months or a year, but if I buy it at enough of a discount to its true value my results will be (and have been) superior to the market as a whole. Of all the disparate investing disciplines, value investing has stood the test of time. The great investors of have all been value investors. Warren Buffett, Ben Graham, Bill Ruane (Sequoia Fund), Bill Miller and Wally Weitz, all have consistently outperformed the market for decades by using various forms of value investing. Currently I am a contributing writer to Seeking Alpha, Vinvesting.com, The Stock Masters and Value Investing News. Posts have been reprinted in The Wall St. Journal, Yahoo Finance, Google Alerts, Google Finance, TheStreet.com. 24/7 Wall St. and Topix.net.