NEW YORK (TheStreet) -- Although I noted the other day on Twitter that I would take time off during Christmas week, it probably won't look that way to readers of TheStreet and followers of my Twitter page.Thirty-six hour days, brother (or soul sister). Packing it all in. No time to rest because this isn't even a job. I write about companies and stocks, primarily in my three favorite spaces: tech, media and retail. Everyday feels like a day off when you do this! But it's not all coming up roses. I have some issues to run by Santa Claus.
Give Us Less From Wall Street AnalystsA majority of the financial media relies way too much on Wall Street analysts. Every other guest on CNBC is an analyst. Most multimedia sites, including TheStreet, call on these guys for reaction daily. I have a newsflash for you: Lots of investors are sick of analysts. They don't trust them. They don't value what they have to say because, generally, they don't say anything of value. That's not to say we should banish all appearances and opinions from big or boutique firms. Not at all. First, plenty of good Wall Street analysts exist. Guys like Brian Sozzi (who contributes to TheStreet's sister site Real Money) Tony Wible at Janney Montgomery and Richard Tullo of Albert Fried and Co. immediately come to mind. But "good" is subjective. You might love guys whom I dislike and vice versa. This faction deserves inclusion in the conversation; we just need to knock back their profiles. Why? For starters, read "Apple Analysts Should Be Ashamed of Themselves This Morning" and then "Absolutely Devastating News for Amazon?" Several firms -- two in particular -- completely blew it on Apple ( AAPL). It wasn't just that they were wrong. It's no sin to be wrong; it's merely human. It's the way they went about being wrong. I explain in the above-linked articles. The second article ( "Absolutely Devastating News for Amazon?") points out that things just got worse when a financial reporter turned to these very firms, seconds after these cats performed pathetically, to get insight on -- of all stocks -- AAPL! I can't make this stuff up.
... has anybody heard from Ingrid Chung at Goldman Sachs? ... After Netflix's disastrous Q2 and weak Q3 guidance in July, Chung waxed bullishly, not only reiterating a buy rating and her $330 price target, but raising EPS estimates from 2011 through 2013.
Before you read this next sentence, call some family, friends or co-workers over to your computer screen, because there's nothing like sharing a laugh with others around the holidays. For 2012, Chung predicted Netflix would post EPS of $7.69.Why does this happen? Are these analysts as incompetent as politicians? Maybe. Or do they have ulterior motives? We don't know. That's the problem. Many sell-side analysts are not straightforward propositions. The clock ticks on their usefulness.