You're a publicly traded company. You made BobbleHeads with Bluetooth a Thing. Now everyone wants their own custom mini-me.
The 3 investment banks who underwrote your offering "cover you," meaning that they write quarterly reports on how well or poorly you performed financially, and share that with their trading clients in return for soft dollar commissions, more or less.
Each quarter, your CFO confirms or tweaks forward guidance, usually giving The Street the company's own estimates for revenues, cash flow, earnings, and maybe a few other metrics. And then they leave it to the analyst community to figure out if the company "got there."
Did the Somalian division have an amazingly good quarter and that's why everything else was weak, yet the company still made the 17 cents a share in earnings to which they guided? Mumblings galore, 13 weeks at a time.
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Finance: What is an Analyst Sponsorship?1 Views
Finance what is analyst sponsorship Well most stock brokerages employ
analysts See our epic video directed by martin scorsese called
what is a sell side analyst for details Despite being
wrong Well over fifty percent of the time these stockbroker
analysts continue to write and publish by selling hold opinions
on stocks and bonds They put out their financial models
which are invariably wrong you know for the public or
their clients anyway to digest And wall street generally listens
even though the buy side investors they're well know the
track record of the cell side Stockbroker analysts Well stock
brokerages even pony up money and trading dollars in commissions
for these guys and gals much like your local weather
channel continues to pay from the meteorologist whose only write
about thirty percent of the time analysts sponsorship happens when
an analyst gives a thumbs up positive review of a
stock strong by strong love baby Bye bye bye All
right well when that happens the stock usually goes up
at least for a day or an hour or so
And if the sell side analysts works for a big
brokerage like goldman sachs and morgan stanley he or she
can Have an especially big impact on a stock in
the short term As confused with the nowhere else to
turn investors hungering for stock buying ideas rationalized the expensive
fees They charge investors for beating the market Even if
the next day well that stock doesn't have so much 00:01:34.44 --> [endTime] analyst sponsorship Mmm Yummy
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