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Post by n8 on Feb 7, 2017 8:56:12 GMT -5
Thomson Reuters/Verus upgrades MANNKIND CORPORATION from HOLD to BUY means what exactly? I understand what it means but what does it really mean bigger picture?
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Post by matt on Feb 7, 2017 10:58:15 GMT -5
What does it mean? Not much. It means the algorithm used to rate stocks has changed its view on MNKD, but not all algorithms are equally well-designed. A category shift can happen because the forward looking forecast improves, the stock price drops, or some of each. In this case, I suspect it is driven mainly by the recent price decline without a change in the P&L forecast. Most computer algorithms are not smart enough to understand WHY the PPS has dropped, in this case it is due to the looming reverse split, while human analysts will look into the data for an explanation. Beware of any computer driven ratings as they tend to be nonsensical at times. Zacks, in particular, is a source that a lot of people follow but which tends to be highly inaccurate.
Few professional analysts are still tracking MNKD at this point and any time you have a small sample size the forecasting should be suspect. For example, Yahoo shows 2 analysts for MNKD with revenue estimates for this quarter that range from a high of $11 million to a low of $1 million; quite a difference in percentage terms. In contrast, Microsoft has 27 analysts following with revenue estimates of 23.39B to 24.15B, a much tighter range in percentage terms.
Don't read too much into analyst's ratings; over time virtually all of them underperform the market!
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Post by babaoriley on Feb 7, 2017 13:17:27 GMT -5
"Zacks, in particular, is a source that a lot of people follow but which tends to be highly inaccurate."
Gosh, Matt, if you're correct, then you just do the opposite of what Zacks says and you can retire in a few years!
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Post by scoy on Feb 7, 2017 17:04:41 GMT -5
"Zacks, in particular, is a source that a lot of people follow but which tends to be highly inaccurate." Gosh, Matt, if you're correct, then you just do the opposite of what Zacks says and you can retire in a few years! Flipping a coin, heads to buy, tails to sell, wouldn't be accurate. I can't see why tails to buy and heads to sell would be more profitable. |
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Post by me on Feb 7, 2017 17:09:54 GMT -5
"Zacks, in particular, is a source that a lot of people follow but which tends to be highly inaccurate." Gosh, Matt, if you're correct, then you just do the opposite of what Zacks says and you can retire in a few years! Flipping a coin, heads to buy, tails to sell, wouldn't be accurate. I can't see why tails to buy and heads to sell would be more profitable. , why do you need to create a new ID to respond every time someone calls you out? |
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