IAmNeil

builders Wrote:
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> you have no idea how research works. as an analyst
> you're trying to identify MISPRICING IN THE
> MARKET
>
> if you feel a stock is FAIRLY VALUED, you initiate
> with a HOLD/NEUTRAL rating
>
> know what youre talking about before you comment
> on forums

Builders, I didn't insult your family name or kick your dog. I didn't slap you with a glove and challenge you to a duel with pistols over a woman's honor. Please, calm down with the hostility.

My point is not that hold/neutral ratings are inherently a bad thing. If the current price is within the range their models and research estimate as fair value, an analyst is well within rights to call the stock a "hold/marketweight."

My point was that it takes time and resources to cover a stock, and typically the "initiating coverage" reports are some of the best-written, most comprehensive reports that an analyst puts together. Capping the whole thing off with a 'hold/neutral' feels like a tremendous waste of resources. Why initiate coverage and publish this 30-50 page opus explaining the industry, company history, Porter's five forces, absolute and relative valuation, etc, etc, only to conclude, "Welp, looks like it's 'bout right as far as pricing"?

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