Dollars and Jens
Wednesday, August 18, 2004
Analyst War Stories
Morningstar's Pat Dorsey had an amusing collection of stories about companies calling Morningstar analysts to complain about their analysis. For example:
[T]he CFO of a financial-services firm called in a huff to complain that our fair value estimate for his firm was "so low that it made the analyst look like an [expletive]." He also noted that our research was "not helping his firm." Curiously, this same firm wasn't interested in talking to us when we initiated coverage a couple of years ago, after we told the firm it was our policy not to allow companies to see our research before it was published. (It's not uncommon for Wall Street analysts to send their research to firms for "fact checking" before publication.) At the time we initiated coverage, the firm also asked whether there was any way it could prevent us from covering it, which seemed like an odd request unless it had something to hide.It's a quick, entertaining read.