"Investment banks, whose analysts were touting stocks with overwhelming zeal even as the stock market started crashing, are now trying to rehabilitate their images. Last week Merrill Lynch , by some measures the world's biggest investment bank, declared that except under strictly monitored circumstances, its analysts would be prohibited from holding shares in the companies they research. The goal is to remove any incentive for them to boost a stock to ensure their own enrichment. But this novel policy will not entirely prevent conflicts of interest from arising. It should be regarded as a springboard to a more complete revamping of the relationship between publicly available research and investment banking."

redux [06.27.01]
News.Com Will Wall Street analysts turn apologetic?

"Wall Street analysts are known for a lot of things--being too optimistic, failing to warn investors about the dot-com crash, and being the latest target for Congress--but they usually aren't known for their apologies."

"Morgan Stanley analyst Jeffrey Camp cut Exodus to a "neutral" from "strong buy" and gave his clients an apology.

"There are few moments in my career that rival this one in its difficulty and unpleasantness. Elbert Hubbard said, 'The line between failure and success is so fine, we scarcely know when we pass it.' But passed it I have, and it is time to own up," Camp said."

redux [06.11.01]
News.Com Did so many get it so wrong?

"As pundits rush to explain what happened on Wall Street, fingers point to the thought leaders. We read exposés on Mary Meeker and Frank Quattrone--once dubbed geniuses--and wonder how they could have sponsored initial public offerings for the nth online grocer or women's portal. Or we ask ourselves how stock analysts could ride a stock all the way down from $150 to $3, all the while touting it as a "strong buy.""

"These are people who were supposed to be making smart decisions. How did they get it so wrong? The answer is, they didn't."

redux [05.31.01]
The Standard The 'X' in What's Next

"With great fanfare, Forrester Research announced last week that the Web is dead. With so many failing dot-coms, that news wouldn't be so hard to believe - if it weren't that Forrester has spent the past few years touting it as an engine of unrelenting hypergrowth."

But Forrester may be doing more than just trying to unhitch itself from the crazy train of the Web. In some ways, the veteran research firm's latest move shows the analyst business at its finest: giving the industry a rosy spot on the horizon to focus on, a clever name for that spot and a forecast with lots of zeroes in it to throw investors and entrepreneurs into a frenzy."

redux [03.12.01]
Salon Do you kick Yahoo?

"Remember, Yahoo still expects revenues of $800 million this year, and has been consistently profitable while other dot-com flashes-in-the-pan burned through their venture capital with nothing to show for it but some outré TV commercials. Yahoo isn't perfect, but it has maintained its lead as the top Web portal by consistently putting its users first, and its sites remain models of simplicity and service.

All of which raises the obvious question: Plainly, the market's pundits were way off a year ago, at the pinnacle of Net stock mania; so why should we put any more stock in them now? Their downside is looking just as insane as their upside."

redux [03.13.01]
The Washington Post Who Blew the Dot-Com Bubble?

"Henry Blodget, Wall Street's loudest cheerleader for Internet stocks, made it to the front page of the New York Times last week. And thereby hangs a tale about the media and the bubble."

"For it was the mainstream media -- which now take such delight in scolding those involved in the dot-com mania -- that helped push the idea that anyone could get rich by playing the market.

"The media invented Blodget," says Christopher Byron, a columnist for Bloomberg News and MSNBC. "In a bull market everyone loves to cheer, and Henry Blodget was everyone's first phone call. . . . Where were they when companies were trading for 150 times revenues? They were repeating the words of these guys. It's disgusting."