Truth Reads Better Than Fiction (Disgraced Former Internet-Stock Analyst Henry Blodget's Blog)

New York Times ^ | October 15, 2005 | DAN MITCHELL

[nickcarraway]

As part of an effort to rehabilitate his image, Henry M. Blodget, the disgraced former Internet-stock analyst, has started a blog called Internet Outsider.

In a "personal note" post on the site, www.internetoutsider.com, Mr. Blodget, who was forced out of the securities business as part of his settlement with the Securities and Exchange Commission, writes that he is grateful "that so much of the feedback has been positive."

"Of course," he allows, "some of the feedback has not been positive." By which he means it has been negative in the extreme.

Much of the critical reader comment on his blog is profanity-laced. Some is fairly restrained, well-expressed indignation. And some comes in the form of satire: "A big shout-out welcome to the man that helped make the bond market soar!" writes "BK."

"As a bond guy, I sweated out the late 90's selling candles in the age of the light bulb while you pumped and hyped. Thanks for the bubble."

Unlike some of his cohort in the late 90's, Mr. Blodget never really seemed comfortable promoting companies with negative gross margins and laughable business plans.

It was this very discomfort that got him into legal trouble. The e-mail messages he sent to friends and colleagues were at direct odds with his public utterances. They were honest, direct and often scathing assessments of stocks he was giving a thumbs-up to on CNBC and in his reports. He as much as said he wished he could tell the public the truth about these shaky companies, but he felt constrained by his position as a stock salesman disguised as a stock analyst.

Now Mr. Blodget is free to say whatever he wants, which is the whole idea behind blogging. And his posts so far are a much better read than his carefully worded

[flashbunny]

"It was this very discomfort that got him into legal trouble. The e-mail messages he sent to friends and colleagues were at direct odds with his public utterances. They were honest, direct and often scathing assessments of stocks he was giving a thumbs-up to on CNBC and in his reports. He as much as said he wished he could tell the public the truth about these shaky companies, but he felt constrained by his position as a stock salesman disguised as a stock analyst."

Up to a couple days before the bankruptcy filing of delphi, several large brokerage firms were recommendign delphi as a buy.

After the bankruptcy, instead of issuing negative recommendations, they simply dropped coverage of the stock.

I can't see taking advice from large brokerage houses who are in the underwriting business. Basically they're shilling for companies in hopes of getting more business. Say something bad about a stock, even if it deserves it, and you risk losing that business.

[Prost1]

Blodget belongs in jail - for a long long time!

[anton]

Wrong! Blodgett shamelessly hyped the absoluute worst of all ebubble companies: ETOYS. There is nothing to redeem him. Leave him in the toilet where he put himself.