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