wall streeters

Sales Of Wall Street’s Favorite Computer Have Stagnated

Source: http://www.businessinsider.com/bloomberg-terminal-sales-2012-10

Bloomberg Terminal

Perhaps this is an indicator of how Wall Street is really doing.

Via Zerohedge, the New York Post’s Keith J. Kelley reports that Bloomberg LP has grown its Bloomberg Terminal sales by only ~1,000 units in the first nine months of this year. 

In 2011, Bloomberg sold 13,672 terminal subscriptions, which was short of the sales goal of 15,000, the report said.

A Bloomberg Terminal is basically a computer that Wall Streeters use to obtain real-time market data, news and stock quotes among many other cool functions. 

There are about 315,000 Bloomberg Terminals installed worldwide.  A subscription costs about $20,000 per year, the report said.

The other problem is 50 percent of Bloomberg employees’ bonuses depend on terminal sales and non-terminal revenue growth.

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Friday, October 26th, 2012 news No Comments

Knight Capital’s Clients Are Completely Abandoning Them (KCG)

Source: http://www.businessinsider.com/traders-knight-capitals-clients-have-completely-abandoned-them-2012-8

Volatile Trading Nanex

Knight Capital’s clients have completely flown the coop after a software error in the company’s trading software caused the company to stomach $440 million in losses, according to three different traders consulted by Business Insider.

Wall Street institutions large and small no longer feel comfortable using the market making firm to execute their trades in the wake of the snafu, essentially cutting of its business.

An equities trader explained that Knight was the “last place” he would go to execute a trade. Others expressed befuddlement and the firm’s inability to rectify the trading error for a full 45 minutes.

Wall Streeters’ abandonment of the firm bodes ill for the company’s ability to recoup losses. In May, the company had a daily trading volume of about $21 billion.

Shares of Knight Capital Group fell 63 percent during trading yesterday, and many predict the firm will go under without outside aid.

NOW READ: 10 Technical SNAFUS That Have Wreaked Havoc With The Markets >

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Friday, August 3rd, 2012 news No Comments

A Truly Embarrassing Chart For Wall Street Stock Analysts

Source: http://www.businessinsider.com/this-chart-shows-why-wall-street-stock-ratings-are-a-joke-2012-2


Only five percent of ratings on companies in the S&P 500 are sell ratings.

That’s right: 95 percent of ratings tell investors to hold or buy and only 5 percent say you should sell.

The following chart comes from FactSet via Cullen Roche:

chart

Henry Blodget recently offered a few reasons why you rarely see sell ratings:

  • Most stocks–especially growth stocks–generally trend up over the long haul, so saying SELL often means betting against the odds and/or making a short-term timing call.
  • Stocks with excellent fundamentals don’t often go down just because they’re “expensive”–instead, they just get more expensive. So saying “SELL” based solely on valuation often sets the analyst up to be wrong.
  • The lack of SELL ratings makes SELL ratings sound like a complete condemnation of the company, to the point where it seems the analyst has a vendetta against it. The more polite way to tell people to sell, most folks on Wall Street whisper, is to say “hold”–or just ignore the stock altogether.
  • The issuance of a SELL rating often drives a stock down, hurting investors who own it. These investors will not usually say “thank you.” Instead, they’ll want your head.
  • Most investors are long-only, meaning they can only buy stocks, not short them. Thus, “SELL” ratings are only useful to hedge funds and investors who already own stocks.
  • Most companies refuse to talk to analysts who hit them with SELL ratings, thus reducing the analyst’s ability to gather information about the company.

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Wednesday, February 15th, 2012 news No Comments

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