MHP

Our Stock Reports on Securities Research Firms

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Image Source: Andreas Poike Structure of the Securities Research Industry The securities research industry has become increasingly competitive, with a large number of rivals in the individual, advisor, and institutional markets. However, barriers to success for new entrants in the individual market are incredibly high, if not impossible, while the advisor market continues to be dominated by entrenched providers with deep ties. The institutional market is shielded to new rivals thanks to talent and capital costs, offering established players an attractive position. Licensed research and data can be a high-return means of generating sustainable, recurring business. We like the group’s structure. Our final ratings and analysis for the group can be found here.

The Times They Are a-Changing

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This article was first published September 2013. It has not been updated. It has been republished to recognize the Nobel Prize in Literature being awarded to Bob Dylan October 13, 2016. Image Source: Mikko Tarvainen Come writers and critics Who prophesize with your pen And keep your eyes wide The chance won’t come again And don’t speak too soon For the wheel’s still in spin And there’s no tellin’ who That it’s namin’ For the loser now Will be later to win For the times they are a-changin’. — Bob Dylan – Times They Are a-Changin I was reading an article the other day that had come to the conclusion that stock funds will get more asset flows (read: be easier … Read more

You Can’t Trust Anonymity; Einhorn Sues

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By Brian Nelson, CFA We’re writing this piece to make you aware of some troubling developments in this industry. The investment business, as we’ve highlighted many times in the past, is based on trust. During the past several years, there’s been an explosion of information overload on the worldwide web, and a lot of the financial and investment information is written by anonymous authors without analyst credentials and with unknown motives. We hold the belief that, if a writer cannot stand behind his work in his own name, then there’s something wrong. Not only are a lot of the articles on other financial websites written by biased and anonymous authors, but now at least one anonymous author has been dealing … Read more