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Why You Can't Trust Brokerage Research - Further Proof

|Includes:Jos. A. Bank Clothiers, Inc. (JOSB)

Brokerage analysts are always looking for an edge to show they offer 'value-added' information. If you're not paying strict attention you might think they did. Here's yet another example of how the cheating occurs.

Sterne, Agee & Leach made a bold call early Wednesday morning. They predicted Jos. A. Bank's (NASDAQ:JOSB) earnings would rise and they loved the shares at the current $41.63 price. As Will Shakespeare's Hamlet once said, "Ay, there's the rub."

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As it turned out, JOSB had already reported, and Reuters had broadcast JOSB's much better than expected earnings and same store sales. Their shares were up 13.5% already in premarket trading.

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JOSB had a gap opening at $48.00 - up $6.37 or + 15.3% from Tuesday's close. Nobody could buy the stock today at anywhere close to the price where Sterne, Agee & Leach will take credit for putting on their recommendation.

Anyone silly enough to act on Sterne, Agee & Leach's research blurb by buying at the open was down 1.17% by 4 pm.

Why did Barrons.com contribute its good name to this deception?

The day's range was $47.29 - $49.48 with the intra-day low coming with just minutes to go. The chart speaks for itself.

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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: JOSB