Putting Analyst-Speak Into English
from
September/October 2002
by David Moon
"Strong Buy"
This stock is already up a bunch this year.
"Buy"
Since the SEC passed Regulation Fair Disclosure, we can't get the company to give us an earnings projection for the next quarter.
"Aggressive hold"
We really don't like this stock at all, but are still nursing some faint hope that the company might include us in its next secondary stock-offering syndicate.
"Hold"
Is there some way we can make everyone forget that we recommended this stock before it declined 80%?
"Accumulate"
The more you buy, the more we make in commissions.
"Market underperform"
We have no idea what this stock might do. If the market goes down and so does the stock, we're right. If the stock goes up, no one will remember our recommendation.
"We are initiating coverage of Acme Products with a neutral rating"
Although we don't have any analysts who understand Acme's business or industry, our CEO just joined a board where Acme's CEO is also a member.
"We are downgrading the stock from 'Market outperform' to 'Market perform'"
This stock's down from 30 to 15 since we first recommended it. Surely it can't do any worse than the S&P 500 from here on.
"Reduce position on strength"
We don't really want to tell you to sell this stock, because it might go up some more—but it might go down, too.
"Sell"
(It is impossible to tell what "Sell" means. There are not enough examples to analyze.)
David Moon is president of Moon Capital Management.
