Opinion

The Great Debate

Stock research is more than just a headline

ericauchard1– Eric Auchard is a Reuters columnist. The opinions expressed are his own –

Stock research analysts get no respect these days. An academic study has concluded that share recommendations have little impact.

A 51-page study entitled “On the information role of stock recommendations,” finds that buy and sell ratings are uninformative and often try to “piggyback” on actual news for their influence. This begs the dismal question: if professional analysts can’t get it right, what hope for the ordinary investor? Click here for PDF.

Sell-side research — driven by the need of the analyst’s employer to trade stocks — dominates daily market conversations. Recommendations are the signposts of these debates, without which many investors would be lost.

Analysts are not alone in selling their independence to the highest bidder, and their reputation has suffered after so many were exposed as marketers for investment bankers, favoured clients or company managements. But independence is not the same as efficacy of stock recommendations.

Pay a small toll to read this news story

ericauchard1– Eric Auchard is a Reuters columnist. The opinions expressed are his own –

There is nothing like the threat of a hanging to concentrate the mind.

The newspaper industry is in a collective panic over its future. The debate centers on the thorny issue of how publishers might find some way, any way, to make online readers to pay for what they read.

The fear is that the newspaper business model has suffered a mortal wound from the collapse of advertising that once funded it, and which has only accelerated in the current economic environment. Or perhaps it’s the realization that younger generations reared on digital media will never settle down to buy print.

The death and resurrection of the tech IPO

ericauchard1– Eric Auchard is a Reuters columnist. The opinions expressed are his own –

The U.S. venture capital industry is desperate to repair the market for initial public stock offerings, but reviving the goose that once laid hundreds of golden eggs may not get very far.

The National Venture Capital Association (NVCA) this week set out its comprehensive plan to revive the IPO market and the heady investment returns that once fueled the tightly knit venture capital industry’s success.

Real-life spy thriller in cyberspace

ericauchard1– Eric Auchard is a Reuters columnist. The opinions expressed are his own –

Once in a while a good computer security scare comes along that has all the makings of a taut Cold War spy thriller and the latest news of a global computer espionage ring is one such story.

A new report entitled “Tracking GhostNet: Investigating a Cyber Espionage Network,” argues that poorly defended computers used by government and private organizations in 103 nations may have been violated. The study has attracted widespread media attention after a New York Times story about it at the weekend.

The CEO is the latest endangered species

ericauchard1– Eric Auchard is a Reuters columnist. The opinions expressed are his own –

The revolving doors are spinning ever faster in the executive suites of corporations.

CEO turnover has reached an all-time high, according to figures kept by recruiting firm Challenger & Gray. Last year, 1,484 U.S. CEOs resigned, stepped down or were fired — six casualties every business day.

The Black Hole: How the Web devours history

ericauchard1– Eric Auchard is a Reuters columnist. The opinions expressed are his own –

Academics, family researchers and even baseball history nuts have noticed recently how some important archives of older newspapers from around the world have vanished off the Web.

The problems have surfaced since PaperofRecord.com, a collection of more than 20 million newspaper pages of papers ranging from the Toronto Star to Mexican village periodicals to newspapers as far as Perth, Australia, merged into Google News Archive.

Ad strategy at root of Facebook privacy row

ericauchard1– Eric Auchard is a Reuters columnist. The opinions expressed are his own –

Social networking phenomenon Facebook has beaten out arch-rival and former market leader MySpace by most measures of popularity, except the one that pays the bills.

While Facebook has outpaced MySpace in bringing in members — it has 175 million active users at the latest count, compared with around 130 million for MySpace — it has struggled make money from them. While MySpace is closing in on $1 billion in revenues, Facebook generated less than $300 million in sales last year, reports say.

The case for a broadband bailout

ericauchard1- Eric Auchard is a Reuters columnist. The opinions expressed are his own –

By Eric Auchard

LONDON (Reuters) – With world economies fast running out of steam, it may seem an unlikely time for cash-strapped governments to discover universal broadband access as an urgent national funding priority.

Yet in this financial plague year, the Great Broadband Bailout of 2009 is rocketing up the political agenda as the global economic crisis deepens further.

Outsourcing faces new era of scrutiny

ericauchard1– Eric Auchard is a Reuters columnist. The opinions expressed are his own –

Outsourcing, Indian-style, is challenged as never before by an erosion in business confidence that makes corporate spending, even to generate quick cost-savings, harder to justify.

“No New Investment” is the order of the day; cost avoidance, the mantra; zero percent, the growth target in the current era of uncertainty.

What Apple loses without Steve

steve_jobs


– Eric Auchard is a Reuters columnist. The opinions expressed are his own –

“There’s probably no God” runs the slogan of an advertising campaign humanists are running on buses across Britain. But if the supreme being has his doubters, few question the importance of Steve Jobs to Apple Inc.

In a letter to employees on Wednesday, the Apple co-founder said he would take himself “out of the limelight” for six months after learning in the past week that his still vaguely defined “health issues” are “more complex than I originally thought.”

  •