The Least Helpful Call You Will Get Today
The Least Helpful Call of the Day today is not even close to the next-least helpful call, whatever that may be.
Today’s Least Helpful Call comes from an outfit called Broadpoint Capital, about which we know nothing except that they are downgrading their rating and price target on Nutrisystem, the diet food purveyor whose main customers, based on their incessant TV ads, appear to be former members of the Miami Dolphins.
Broadpoint is acting in response to last night’s news, in which, to use a highly technical Wall Street term—Nutrisystem “blew up,” announcing a large sales and earnings shortfall, causing the stock to collapse 20% in the aftermarket.
Broadpoint is unhelpfully downgrading their rating on the stock this morning—and I am not making this up—from a “Strong Buy” to a “Buy” while simultaneously cutting their price target from $75 a share to $50, according to the indispensable Briefing.com. How the ultimate value of a business changed by one-third overnight is beyond our ken, not to mention why that purported value is now $50 a share, and not $48 or $51 or $54.
In any event, anybody eager to follow Broadpoint’s latest recommendation on the shares can buy all they want at, oh, $37 right now.
Jeff Matthews I Am Not Making This Up
© 2007 NotMakingThisUp, LLC
The content contained in this blog represents the opinions of Mr. Matthews. Mr. Matthews also acts as an advisor and clients advised by Mr. Matthews may hold either long or short positions in securities of various companies discussed in the blog based upon Mr. Matthews’ recommendations. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.