This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

If an Apple Analyst Switches Firms, Does a Tree Fall in the Forest?

NEW YORK ( TheStreet) -- Lots of Apple (AAPL - Get Report) stories making the rounds today with headlines saying something like ...

Apple is 'Poised For Liftoff' Says Cantor Fitzgerald Analyst Brian White

Or, worse yet ...

Cantor Fitzgerald Starts Apple (AAPL) at Buy with $777 Target

What a business!

Credit to the folks writing these stories. They add the context you might miss if you're simply a headline reader. Or maybe the headline wasn't provocative enough for you to click into the story. Or, worse yet, maybe the headline told you everything you think you need to know so you didn't read further.

Most stories I have seen (save one from Marketwatch) explain that the Cantor analyst, Brian White, comes to the firm from Topeka Securities where he had a $1,111 price target on AAPL shares. Now, with White as the analyst behind the action, Cantor is "starting" coverage on AAPL with a buy rating and $777 target.

But there's danger in the headlines and the notion that, technically, Cantor is "starting" AAPL coverage. Because quite a few investors might look at this and think OK, we're seeing a shift in sentiment. $777 price target. Time to get in. And they might not know it's an AAPL permabull -- resurfaced at a new Wall Street storefront -- with the same schtick.

White is one of these analysts turned media stars. He uses fancy price targets and now, through the magic of a resume update, goes all tabula rasa on us. It's as if his $1,111 price target that quite possibly cost investors serious coin when AAPL was trading at around $700 never even happened!

I'm of the belief that you should trust few people in your life. But I wouldn't take a free drink from most Wall Street analysts, let alone one with a rehashed thesis on a stock he got wrong passed off as somehow new.

-- Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is a columnist and TheStreet's Director of Social Media. Pendola makes frequent appearances on national television networks such as CNN and CNBC as well as TheStreet TV. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs