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Article: Unbiased observers. (Investments & Finance).(pay attention to independent stock research firms)
- Article from:
- Los Angeles Business Journal
- Article date:
- May 5, 2003
- Author:
CopyrightCOPYRIGHT 2003 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Too bad more people weren't listening. In March 2000, Precursor Group, an independent stock research firm in Washington, correctly predicted that the U.S. government would block WorldCom Inc.'s proposed takeover of telephone rival Sprint Corp. -- perhaps ending WorldCom's growth-by-acquisition strategy. WorldCom shares closed at $41.39 on the day of the report.
On Jan. 22, 2002, Precursor Chief Executive Scott Cleland declared, "WorldCom has a dying growth model." The shares traded that day at $12.28. Almost a year and a half later, WorldCom has gone bankrupt and its shares are worthless.
Precursor's prescient comments were in sharp contrast to the ...