Summaries

Summaries

Summary 1

Is Jack Grubman the worst analyst ever? 

Blaming a single person at the time of any big crisis period is not something appreciable to be done. In spite of that the contribution of Jack Grubman who is the Wall Street's highest paid analyst ever, is still something which can not be neglected at any cost. The blast of 1990s in the telecommunication industry was something which is not able to be forgotten. In those years, most of the new companies were going public, and the old ones were recharged. No one has predicted that what is about to occur. The demand felt was actually a fantasy, the boom became a bust soon after that, and in only a span of two years the industry faced a loss of almost half a trillion dollars in the overall market value. The indirect buyers were even hurt, in fact the fidelity domestic equity funds, had $25Billion riding on the telecom industry by the end of 1999.

Economy was almost rippled on what this single industry has done. The global interest rates were although another important part. The catastrophic event was at that time blamed on the analyst Salomon Smith Barney. It can be said that the Jack Grubman was recogniser so many years ago as someone always states what is absolutely going to happen. He is almost a find of the Salomon Smith Barney and is being said someone even worse them him when it comes on the hit the market has felt as a result of his analysis. Not to forget the unforgettable true that the similar guy was the one who made himself a huge name in 1997 and was said as a sculpting figure for the industry too. In the year 1998, Jack Grubman was the one who made the company raking as high as $343 million through the shrewd deals of mergers and acquisitions.

It was claimed that even the name like Qwest were following the commands he was making, and all of them were looking truly alluring. The confident calls of the Grubman were the one which was making investors of the telecom industry rich. The recommendations made by him in the Metromedia Fibre Network were also proved to be true. After so many successes at the time of downfall Jack Grubman said that a year before the downfall that there will be no mergers and the bankruptcies will be there. This argument is not enough for the support; marketperform.com states that if all of the suggestion made by Jack were followed since the start of 1999, the loss suffered would have been 74.5% on the whole.

The important thing is that, we all expect an increase at the time of investment but what actually happened is contrast to the expectation of the investors. The point is that, is there being there any lesson learned? The arguments which are given by the analyst are usually not worthy, and the market can be declared s being really unexpected all the ...