The Informational Value of Stock Analyst Recommendations for Long-Term Oriented Investors PDF Download

Author: Thorben Wegner
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
This Master's thesis documents an empirical study on the quality of equity investment research particularly for investors whose target stock holding periods exceed the short term. A data sample comprising stock recommendations on large-capitalization stocks from both Germany and Switzerland is utilized in connection with event study methodology to generate insights into the immediate price impact of recommendations as well as the stock price development in the twelve months after their respective release. The obtained results exhibit a rather short-lived positive price shock immediately following the dissemination of favorable recommendations and a persistent negative price drift induced by negative recommendations - also when controlling for analyst herding effects. In consequence, the results of this thesis suggests a lack of informational value in favorable analyst recommendations, while "Underperform" and "Sell" recommendations appear to be valuable investment guidance on average. Missing independence of equity research services in brokerage houses from investment banking clients is discussed as the main reason for the explored informational value asymmetry.

Author: Marc H. Gerstein
Publisher: John Wiley & Sons
ISBN: 0471464910
Category : Business & Economics
Languages : en
Pages : 354

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Book Description
A market beating method for finding success in trading stocks Value is a concept that frequently eludes investors -- especially when it comes to stocks. In many cases, successfully identifying value can make the difference between picking a winner and getting burned. The Value Connection offers a systematic and doable method investors can use to take advantage of value in the stock market. Based on author Marc Gerstein's "Value Connection" method, this book will show investors how to find potentially attractive value connections, analyze specific situations to see if the value connection is sound, buy the best value connected opportunities, and sell stocks for which the value connection has weakened. The proven four-step method outlined -- which allows investors to understand the relationship between a company and its stock -- will help any investor screen the stock market for the best values out there. Real world examples make understanding this revolutionary investing method easy. Marc H. Gerstein (New York, NY) is the Director of Investment Research at Multex. Prior to that, he was in the research and editorial department at Value Line. Over the course of two decades he analyzed stocks across a wide variety of industries and sectors, including household products, specialty retail, restaurants, mining, energy, hotel/gaming, homebuilding, airlines, railroads, and media. Gerstein appears periodically on CNNfn, Bloomberg TV, and is often quoted in USA Today, CBS MarketWatch, The Wall Street Journal, The New York Daily News, and Money Online. He is also the author of Screening the Market (0-471-21559-7).

Author: Timothy Hayes
Publisher: McGraw-Hill Companies
ISBN:
Category : Business & Economics
Languages : en
Pages : 328

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Book Description
The editor of "Investment Strategy" shows how individual investors can access institutional-quality tools, data, and indicators and consistently beat the market. Hayes presents walk-through examples of a wide variety of investment models based on more than 100 years of stock market data and research from Ned Davis Research to achieve top results. 120 illustrations. 60 tables.

Author: Jan-Philipp Matthewes
Publisher: BoD – Books on Demand
ISBN: 3945021073
Category : Law
Languages : en
Pages : 185

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Book Description
Financial analysts play an ambivalent role on financial markets: On the one hand investors and the media frequently follow their advice, on the other hand they are regularly discredited when their forecasts or recommendations prove to be erroneous. This cumulative thesis explores the informational content of financial analysts’ forecasts for investors by addressing three specific topics: Consensus size as a rudimentary investment signal, the association of analysts’ target prices with business sentiment, and the consistency of analysts’ different investment signals in the context of the 2008 financial crisis. Overall, the thesis provides additional evidence that investors can profit from analysts’ forecasts and recommendations. However, it is also shown that investors need to be very selective about which signal to rely on and in which context to use these because analysts’ investment signals can also be heavily biased and erroneous. About the author: Jan-Philipp Matthewes studied ‘Economics’ at the University of Cologne, Germany, and holds a Dean’s Award from the Faculty of Economics and Social Sciences. His research focus on financial analysts evolved while working in equity research at a leading German bank. The PhD-thesis was supervised by Prof. Dr. Martin Wallmeier, Finance and Accounting, at the University of Fribourg, Switzerland. Since 2013 Jan-Philipp Matthewes is the managing director of the boutique private equity firm ‘Matthewes Capital Invest GmbH’.

Author: Jeremy J. Siegel
Publisher: McGraw-Hill Companies
ISBN:
Category : Business & Economics
Languages : en
Pages : 328

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Book Description
"Siegel's conclusion - that, when long-term purchasing power is considered, stocks are actually safer than bank deposits! - is now strengthened with updated research findings and information that include a thorough analysis of the "Dow 10" and other yield-based strategies that have captivated investors over the past several years; how the Baby Boom generation will change the stock market forever - knowledge that can energize your own portfolio's performance; the amazing effect of the calendar on stock market performance - and how investing at certain times of the year can enhance performance; how the newest tax laws impact your investment returns and the funding of your retirement account; analyses and performance comparisons of highly publicized market sectors such as small cap stocks, growth stocks, and the "Nifty Fifty" stocks; and how Wall Street pros use investor sentiment and Fed policy to successfully time stock purchases over the investment cycle."--BOOK JACKET.Title Summary field provided by Blackwell North America, Inc. All Rights Reserved

Author: Arshad Khan
Publisher: iUniverse
ISBN: 0595227740
Category : Business & Economics
Languages : en
Pages : 238

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Book Description
This book contains 501 stock market lessons, guidelines and tips, which are grouped by various topics such as buying, selling, planning and research, picking winning characteristics, company analysis, valuation, price/earnings ratio, price performance, market behavior, technical analysis, monitoring the economy, miscellaneous tips and common mistakes to avoid. Novice as well as experienced investors will find this book useful, which is easy to read and follow because each tip is short, to the point, and grouped together with other tips that address the same topic. Therefore, an investor desirous of looking up tips on a specific subject, such as market behavior, will be able to find them in one place-in one chapter. The tips in this book provide a high level, summarized, overview. Therefore, it is ideally suited for refreshing the basic principles and rules of stock market investing. Hence, investors who desire to gain an in-depth knowledge of stock market investing are referred to the author's previously published book, "Stock investing for everyone: Tools for investing like the pros".

Author: Harry Domash
Publisher: FT Press
ISBN: 9780130353320
Category : Business & Economics
Languages : en
Pages : 424

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Book Description
Recent events prove that you can't always trust the so-called experts. This book gives investors the smarts to pick market-beating stocks on their own. Domash goes beyond the basics, and includes never before published advanced analysis strategies.

Author: George A. Fontanills
Publisher: John Wiley & Sons
ISBN: 0471036706
Category : Business & Economics
Languages : en
Pages : 464

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Book Description
Avoid costly trading mistakes with this workbook that tests readers' investment knowledge No one enters the stock market in the hopes that they may actually lose money on their investments. Sadly, most do. Avoid expensive trading blunders with this hands-on workbook designed to test readers' investment savvy. Developed by a popular stock trading instructor, The Stock Market Course Workbook quizzes readers on their knowledge of the concepts presented in Fontanills's The Stock Market Course. Because mistakes are costly in the stock market, this accessible study guide provides readers with the opportunity to trade "fake money" before risking their real assets in the market. The invaluable lessons learned in this workbook could save readers thousands of dollars in investment mistakes.

Author: Daniel Kreutzmann
Publisher: Logos Verlag Berlin GmbH
ISBN: 3832525297
Category : Business & Economics
Languages : en
Pages : 141

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Book Description
This thesis focuses on the three primitive value drivers of each company valuation model that is based on fundamental analysis: the discount rate, the expected future payoffs during the explicit forecasting period, and the terminal value at the end of the explicit forecasting period. While the first factor is analyzed theoretically by incorporating the government into the classical valuation framework, this thesis studies the other two factors by investigating forecasts made by professional investors, i.e. financial analysts. In the first part we show that the government's and the shareholders discount rate usually differ and analyze how the government's and shareholders different objectives lead to conflicts in the context of capital budgeting. The empirical part of this thesis shows that macroeconomic information is frequently used by financial analysts when updating their earnings expecations and that target price forecastsmade by financial analysts can be used to predict abnormal returns.

Author: George Fisher
Publisher: McGraw Hill Professional
ISBN: 9780071406789
Category : Business & Economics
Languages : en
Pages : 330

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Book Description
Without a doubt, millions of investors don't feel entirely comfortable researching their own stock selections. They invest in 401(k) plans, mutual funds and even individual stocks with only bare-bones investigation, turning to so-called investment gurus on financial news shows and headlines in newspapers for their information.