Tuesday, October 13, 2009
Rich Smith :: Townhall.com Columnist
This Just In: Upgrades and Downgrades
by Rich Smith
Vote on It:
Average Vote:
[+] Text [-]
 
 

At The Motley Fool, we poke plenty of fun at Wall Street analysts and their endless cycle of upgrades, downgrades, and "initiating coverage at neutral." So you might think we'd be the last people to give virtual ink to such "news." And we would be -- if that were all we were doing.

But in "This Just In," we don't simply tell you what the analysts said. We'll also show you whether they know what they're talking about. To help, we've enlisted Motley Fool CAPS, our tool for rating stocks and analysts alike. With CAPS, we track the long-term performance of Wall Street's best and brightest -- and its worst and sorriest, too.

And speaking of the best ...
Here on the cusp of Halloween, Google (Nasdaq: GOOG) investors feel like kids in a candy store, being treated every day to ever-more upgrades and earnings uppings as the stroll down Wall Street. But what about the sick man of the Internet – Yahoo! (Nasdaq: YHOO)? Its paradigm-shifting partnershipwith Microsoft (Nasdaq: MSFT) notwithstanding, Yahoo's collected fewer prizes than the kid wearing the bedsheet at the Halloween costume contest.

No longer. This morning, Yahoo! won one of the coveted upgrades for itself, when Benchmark Capitalupgraded its shares from "hold" to "buy." Citing "firming display trends, low guidance/expectations," and predicting we will hear cautious optimism from management when it reports third-quarter earnings, Benchmark thinks now's the time to buy into the story of a Yahoo! emerged-from-the-grave.

Should you sit in rapt attention as Benchmark tells its ghost story? Or run away, screaming in horror?

Let's go to the tape
I've got my suspicions ... but rather than rush to judgment, let's first take a look at Benchmark's record. Because judging from this recordin the Media and Internet Software and Services sectors, Benchmark doesknow a thing or two about Internet advertising, and the firms that profit from it:

Stock

Credit Suisse Says:

CAPS says:

Credit Suisse's Picks Beating (Lagging) S&P By:

Gannett (NYSE: GCI)

Outperform

**

182 points

CBS (NYSE: CBS)

Outperform

**

22 points

Interactive Data (NYSE: IDC)

Outperform

*****

(6 points)

ValueClick (Nasdaq: VCLK) Continued...

1 2
| Full Article & Comments | Next >
Share:
Vote on It:
Average Vote:
 
About The Author

Rich Smith is a business writer with the Motley Fool.

Be the first to read Rich Smith's column. Sign up today and receive Townhall.com delivered each morning to your inbox.

©Creators Syndicate
Sign Up to Post Your CommentsSign Up to Post Your Comments
If you are already registered, click here to login. Otherwise, please take a few seconds to register with Townhall.com. Once you sign up, you’ll be able to post your comments immediately, use the action center, get podcasts, and more!
Note: Fields marked with a red asterisk (*) are required.
Salutation:
First Name:
*
Last Name:
*
Email:
*
Nickname:
*
Note: Nick name will be shown when you post comments.
Address 1:
*
Address 2:
City:
*
State:
*
Zip:
*
Phone:
      
The very best in financial advice from Dave Ramsey, Larry Kudlow, Motely Fool and many more plus Dilbert!