Ashok Kumar, a little known analyst from Collins Stewart, has
been making many negative calls as of late. This morning he
downgraded Western Digital and Apple Inc., which may have caused
those stocks to fall in the early morning hours on Wall Street.
This week, Kumar also had negative things to say about AMD after
its report, and last week, he had negative things to say about
Dell's business plans. Mr. Kumar also stated last week that
he thought the likelihood of IBM buying Sun Microsystems was
"better than 50/50," before that deal collapsed. He also
downgraded Atheros last month, was earlier "disturbed" about
Hewlett Packard's business, and also downgraded NetApp, saying
"things have never looked worse," for that company. Both
companies have risen since those statements with NetApp's stock
rising over 50%.
In between following many stocks, doing business with clients,
and getting attention from the press, perhaps Mr. Kumar's stock
picking skills are wavering and deserve better scrutiny.
Many fund managers pay more attention to the details in an
analysis than the price targets and recommendations made by the
analyst. But those recommendations do have their
effect. Here at Market Rap, we like to follow sell side
analysts who like to be heard, and hold analysts accountable for
their quick trigger upgrades and downgrades, in order to measure
and discuss their performance.
So look out Mr. Kumar, we have heard you and are now paying
attention. Good luck.