Tuesday, December 07, 2004

An Update On Chamberlain's Ignorance

Last month I wrote about how Jeffries' analyst, Charlotte Chamberlain, is a great contrarian indicator. Today as I was writing about General Atlantic Partners and their rather significant holdings of AX it occurred to me that there is an example of how Jeffries doesn't get AX. If you harken back to last quarter's conference call (click here to listen to it: at approximately 51:32 minutes into the call, Chamberlain asks what the reason that AX's 25-day moving average of volume (the stock, AX's volume) is 141,000 shares.

First, how does a company's management know what the market is thinking? Second, it's clear that she doesn't realize that General Atlantic Partners owns 94 percent of the float. If they aren't trading, that only leaves about 620,000 shares to be traded. at 141,000 shares/day that's roughly 23% of the remaining float. By anyone's standards, that's a decent chunk of trading volume. Not to mention, the stock's up over 10% since her bonehead call on 11/11/2004.

It's also interesting that the release that was on Y! Finance re: her downgrade is mysteriously missing. Anything to avoid accountability!


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