Forum Archive Index - May 2000

["Nigel Bree" <nbree@kcbbs.gen.nz>]

brendon peters wrote:
> According to my 'Making money on the New Zealand sharemarket' book (by
> F Newman/P Briggs), when a brokerage firm says "Hold" , this is what
> it means:
> "Nothing much appears to be happening, sit on the fence for a while,
> something must happen one day".

See http://www.thestreet.com/funds/deardagen/932169.html

Capsule summary: what it means depends on the analyst. But looking at
these ratios:
   One-third of the ratings are strong buys. Another third are buys
   and one-third are holds, says Joe Cooper, a First Call research
   analyst. The remaining two categories -- sell and strong sell --
   command a minuscule 0.8% of the total. (During the 1990s, that
   distribution has been about the same.) 
you have to say that a "hold" rating is as often as not the strongest
negative signal you're likely to see.


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