What does brokerage hold means

[UNKNOWNDUDE]

Apr 20, 2001 5:38 A.M. VANCOUVER, BC, CA BROKERAGE HOLD (BEYOND UPS' CONTROL)


how long is usually that hold

 

[Yo Ma Ma]

Doesn't sound very encouraging... did you try calling UPS to see if they can tell you anything?

 

[Doggiedog]

Hold is usually a bad sign. Each company has its own rating systems. At my previous company, hold, neutral or market perform usually meant 0-10% stock appreciation in 12 months. Buy, accumulate or Outperform meant 10-20% in 12 mos while Strong Buy meant 20%+.

However, Hold has very bad connotations in that brokerages don't like to put Sells on stocks. The reason being, investment banking. IBanking is the cash cow of brokerages. If a brokerage pisses off a company by putting a Sell on a company, it could be used as ammunition by another brokerage firm when pitching banking deals. So the politically correct way of saying you don't like a company is by rating them a Hold or MP. I've seen a few Sells in my time and each time the analyst gets very angry calls from the company followed by threats of loss of banking business. In fact, Holds usually get the same reaction if the company happens to be a banking client of the brokerage.

 

[UNKNOWNDUDE]

Doggie you went off topic with your answer its customers hold for UPS package that was going to canada

 

[Doggiedog]

Hehe whoops.

I guess when I hear stuff that has to do with my line of work, I go overboard.

 

[brxndxn]

So far, this past three years, most people would have lost money if following analyst recommendations...

Example: AMD goes down so brokerage dowgrades AMD to hold; AMD goes up so brokerage upgrades AMD to strong buy.. What's wrong with that picture if you're trying to sell high and buy low?

You need to research the stock yourself - don't ever go blindly on analyst recommendations.