Dumb Analyst

If you’ve spent any time listening to Wall Street Research or financial television, you’re bound to have come across at least some of these phrases.  They tend to get bandied around with no real knowledge of what they mean on the part of the speaker.

1. The Only Game in Town.  Usually said about a stock that has been going up against all the odds.  The analyst has run out of reasons to recommend it and the only justification now for buying it is that it is ‘The Only Game in Town’. Kind of like telling someone ‘It’s a No Brainer’.

2.  A Value Trap.  The mirror opposite of the above, used when a stock keeps going down and you can’t figure out why.  Nobody actually knows how to define a “Value Trap” but Wall Street loves to use the term because it scares people into selling

3.  A Number of Catalysts Coming Up  I’ve never understood this.  How can something be a catalyst for the share price when everyone in the market knows of its existence?

4.  Dead Money.  Used by Wall Street to get people to trade out of a stock for no reason.  Usually applied when the analyst can’t see any ‘catalysts’ ahead.

5.  Very Underowned.  This makes no sense at all.  At any point in time, all a company’s shares must be owned by somebody.

6.  We see a Period of Greater Uncertainty Ahead  So does the rest of the market.  If you’re always waiting for certainty in the stock market, then you’re in the wrong game.

7.  Upgraded to a “Conviction Buy” at a Top Tier Bank.  Usually a sign that the stock has reached its peak and will start its inevitable decline.

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