We need to be careful not to see conspiracies everywhere, else we lose focus on those that matter.
Zero Hedge: Can someone please explain why Mr. Bove noted on CNBC that Wells Fargo is proving “itself to be a standout” in the banking industry (2:30 into the clip), that it “would help push the market higher,” and that is it the big winner in today’s earnings derby, a mere nine hours before he ends up downgrading the company to a SELL? Perhaps, the SEC can advise on that particular conundrum.
This highlights an interesting situation for analysts.
Actually, it is unethical for analysts to telegraph changes in their investment recommendations before the official change is released and widely distributed.
Thus the ethical route of behaviour is to stick to your previous view when interviewed even if you know that you have a change coming up. Also, just because Wells Fargo has positive data doesn’t mean it can’t be a Sell. The stock has already run from it’s 2009 lows and perhaps has it all priced in. Mr. Bove acted perfectly fine here.
While it may appear strange, in this situation he couldn’t give any sign of his upcoming recommendation change during the interview, and he doesn’t.