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Ilene is an editor at Phil's Stock World, Market Shadows and other financial publications. Her educational background is in biology, pathology and law. After working in biochemistry and pathology during her graduate years, she attended Law School at Loyola. She practiced law in a number of... More
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  • Wall Street Cheats – Don't Be Fooled (SEE) 0 comments
    Dec 23, 2012 8:16 PM | about stocks: SEE
    Wall Street Cheats - Don't be fooled

    Courtesy of Dr. Paul Price at Market Shadows

    Readers of main stream financial publications expect what is printed to be accurate. This should be especially true when a brokerage firm is putting out a specific buy/sell opinion that is priced and dated.

    The December 22, 2012 issue of Barron's illustrates how firms can pad their performance numbers by issuing 'past-posting' recommendations after a stock has already moved up.

    Here is a look at exactly what was published. The column is dated Dec.22, but the 'Outperform' rating claims to have been made on Dec. 20, 2012. Robert W. Baird & Co. really liked Sealed Air (NYSE:SEE) at $15.21 per share.

    [Click on images to enlarge]

    I found only one itsy bitsy problem with that. SEE had a weekly range (Dec. 17 - 21) from a low of $16.13 to a weekly high of $17.36. Despite Friday's sell-off SEE closed the week at $17.35.

    How, then, could Baird & Co. have put it on the buy list at $15.21? Give them the benefit of the doubt and assume they put out their research recommendation after the close on December 19, and prior to Thursday's opening... Sorry, it closed at $17.23 that day.

    Robert Baird & Co. will probably take credit for a very nice $2.14 per share (+14.07%) gain for the first day following their well-timed buy at $15.21.

    Why complicate matters by saying that it didn't happen?

    I'll be waiting to see if Barron's or Baird & Co. publishes a correction. I won't be holding my breath, though.

    Stocks: SEE
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