One of the best stock tips I can give is: don't take stock tips… from anyone… even from analysts.
For over ten years financial columnist John Dorfman has tracked analysts' most loved and most hated stocks. His research shows that the most loved stocks trail the averages by a mile. Analysts' most hated stocks, on the other hand, consistently outperform their most loved ones.
Dorfman reports that in 2009 analysts picks and pans were especially idiotic: “Last year was particularly good for the despised stocks. Led by Sears Holdings Corp., they rose 47 percent compared with 23 percent for the analysts’ favorites.”
At best, analysts are no better than, “a blindfolded monkey throwing darts at a newspaper’s financial pages.“ So please, don't take stock tips… even from the, so called, “analysts.”
via Bloomberg