A Bove and Beyond

• Posted by Adam Warner
• on October 22nd, 2009

So was it unethical for Dick Bove to destroy all of humanity recommend WFC in the morning, then downgrade it in the afternoon? Zero Hedge says yes, Clusterstock says no.

I would say, unless he bought puts into his morning call, I’ll go with Clusterstock on this one.

But here’s another question, can Dick Bove changing his position on on bank stock really move an entire market? I mean we really tanked the last hour, and the news event everyone pointed to was the Bove call.

Now I tend to think assigning causality to a market move is pointless. In my mind, if we went down at 3pm, it was going to happen anyway, and all the “news” does is provide a convenient catylyst. Plus just on principal, this guy has not exactly had a golden track record, I mean there’s some video floating around of him recommending LEH in the 40′s in the summer of 2008. But even if had a better hand, do people really make split second investment decisions based on something like that? That has to be a fade.

Update: OK, apparently Bove won’t be going on the Tee-Vee providing expert commentary on an earnings report any more, at least until he reads the report.

Prominent banking analyst Dick Bove, who caused a stir Wednesday with seemingly contradictory remarks on Wells Fargo, has decided he’ll no longer provide immediate earnings commentary on air.

“I’m not going to do it anymore. I’m going to have to see the numbers before I go on air,” Bove told Dow Jones Newswires Thursday. “It creates an untenable situation.”

Hey CNBC, I’m here if you need me. I never read earnings reports, so I can pop on the instant they’re out, and give just as informend opinion as I would 6 hours later. But I do demand you rehire Rebecca Jarvis.

Oh, and Zero Hedge has Bove’s LEH call.

 

 

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