Silly CFOs

If you wonder why you don’t read too many negative analyst reports in the market this is typically a reason why

Chris Lee can be seen standing over a seated Timothy Lam and ordering him to leave the conference room on Wednesday. Lam initiated coverage on PAX Global’s stock in April with an underweight rating, making him the only analyst out of 17 tracked by Bloomberg to have a bearish recommendation at the time.

Asell-side analyst’s relationship with the management is so important, they can receive further insight into the business, easily arrange meetings for their clients and some of the time you’ll even see those sell-side analysts join the firm’s that they wrote reports on. It’s not the individual’s fault its just the way the business is. I’ve heard from a friend that he also received negative treatment from the CFO of an airline company here for writing a negative report on them, you can probably guess which one that is….
Source: Bloomberg
Howard Marks: Political realities.
There’s a lot in Howard Marks latest memo and I can’t do it justice with a summary, so here’s his last paragraph and a link to the whole article

I wrote this memo to explain what happened in the UK this year and what I think is happening in the U.S.  I wanted to point out that politics rarely hews to economic reality; rather, it has a reality all its own.  

The recent trends in income, wealth, trade and employment are causing a lot of dissatisfaction in the U.S. and Europe, and I expect them to have a strong impact on politics for years to come.  Widespread economic dislocation can cause voters to choose the wrong leaders.   The U.S. is not exempt, and we must be highly vigilant in this regard. 
I’m off to Vietnam for the next few days so there won’t be any posts til Thursday

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