Forum Archive Index - May 2000

[Richard Scott <richard@tkf.att.ne.jp>]

Kausa wrote:

>I have been having very good sleeps after selling my
>BCH...
>
>What do brokers mean when they place a "hold" on a
>stock?
>A: We cannot see this stock is going anywhere. Put
>your holdings in the bottom of your drawer. Really you
>should consider cash up and put money in stocks we
>rate as "buy". This stock is history as far as we can
>see.
>
>Cheers,
>Kausa

Another aspect of brokers' recommendations is that many are lothe to tag a
"Sell" to their tips because they are also acting for the company they are
writing about and deriving fees from these companies for their services.

You have to read between the lines somewhat with this. HOLD may actually
mean SELL in many cases.

It would be nice for brokers themselves to disclose their interest not so
much with reference to their holdings, although that would be helpful, but
also with respect to which companies they are acting on behalf and in what
way. The words "BUY" "SELL" "HOLD" as they use them would likely then have
a much clearer meaning.  N'est pas???

Richard


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