Felix Salmon

Sell-side snafu of the day, JP Morgan edition

July 16, 2010


This is the stock chart for ATP Oil and Gas over the past five days: it plunged at the open on Tuesday and then soared at the close today. And it’s all because of Joseph Allman, the analyst for ATP at JP Morgan

Why sell-side analysts are wrong

June 21, 2010

Aaron Pressman has a good report on the sell-side failure to perceive the risks surrounding BP in the wake of the Deepwater Horizon catastrophe. Why was Wall Street so very bullish on the stock even as it was being pummeled in the markets?

Guy Hands and Citi’s Chinese walls

December 16, 2009

Terra Firma has filed a slightly batshit lawsuit against Citigroup, in which the poor sheeplike Guy Hands claims he only bid for EMI because Citi’s David Wormsley told him he ought to.

Annals of research transparency, JP Morgan/MBIA edition

August 11, 2009

According to MBIA’s latest quarterly report, the insurer has a book value of $2.8 billion, or about $13 per share. JP Morgan analysts Andrew Wessel and Daniel Kim beg to disagree, quite violently: in a note issued this morning they said that MBIA’s tangible book value is actually negative, to the tune of about -$40 per share. Downgrading MBIA to “Underperform”, in an action which has helped to send MBIA’s stock down 14% today, they write:

Annals of no-comment, Meredith Whitney edition

April 9, 2009

David Weidner speaks to Meredith Whitney:

When I asked Ms. Whitney this week if she deserved acclaim for The Call – in particular credit for calling the meltdown – she declined comment…