The Qatar Investment Authority, a sovereign wealth fund, has expressed interest in buying part of the US Treasuryâs stake in Citigroup, potentially boosting efforts to sell the shares amid the global rout in banking stocks, people familiar with the matter said. The QIAâs interest in Citi, which was bailed out by the government after losing $50bn in the financial crisis, comes as other cash-rich state funds are shying away from banks â often because of big losses on such investments in the past. http://www.ft.com/cms/s/0/837a1948-6848-11df-a52f-00144feab49a.html ...you should know that Goldman is never acting without insider information...
One thing most don't realise is that any analyst or brokerage house recommendation is done in code. The more important thing is what they've done with the company's earnings estimates. Usually buy means the analyst doesn't see much more upside potentials. Buy to neutral normally means sell. Neutral to sell usually means the analyst doesn't see much more down side potential. The strongest buy rating is to move from sell to neutral, and the strongest sell rating is to move from buy to neutral. But in order to really understand the recommendation, you have to compare it to the earning's estimates.
Always found it comical how banks/firms can actually rate each other..... they're all in the SAME sinking boat!
Here are the meanings Buy - Stock is expected to outperform the average of its peers Neutral - Stock is expected to perform similar to the average of its peers Sell - Stock is expected to under perform the average of its peers -------------- This means that a stock can have a buy rating and go down and a stock can have a sell rating and go up and the brokerage house will still be right. Not many people know what the ratings mean
Investor Ackman buys 150 million shares of Citigroup At the end of his speech at the 15th annual Ira Sohn investment research conference, Ackman said, "And by the way, we bought about 150 million shares of Citigroup, but I don't have time to talk about it." Ackman is the managing member of Pershing Square Capital Management. http://www.reuters.com/article/idUSTRE64Q0E120100527
"Finra has hit Citigroup Global Markets Inc. with a $1.5 million sanction for allegedly failing to supervise a broker who scammed investors out of more than $60 million held in trust funds for upkeep of cemeteries or burial plots." the article: http://www.investmentnews.com/article/20100530/REG/305309972 One Hell of a Deal! This is the way to make money, scam $60 million and if you get caught, take a fine of less than 2% and admit no wrongdoing!
How about this: Buy-- would likely lead to trading commission from buyers to the recommending brokerage. Neutral--- probably a sell but too much heat if one says it, or who care about it. Sell---- Some short sellers would like to lock profits without moving the market. In addition brokerage would have commish from both seller and the short sellers covering his shorts. I believe brokerage is a good business as it has multiple profit centers.