Sell Side Analysts…What do they do?

Somehow I’m constantly surprised at what the sell side analysts do and don’t focus on. Listening to the BKS Q2 call this morning there wasn’t a single question about Borders (BGP) (fresh topic considering there was an article in the WSJ last week about it) and not a single question about the announcement of the CEO of Barnes & Noble.com (BKS) resigning two days ago. All the street wanted to focus on was what the EPS for the year was going to be so they could slap a multiple on it and write a two paragraph note summarizing the press release.

Yes it’s highly likely that BKS management would have sidestepped the questions but the questions should have been asked anyway. You never know but maybe they would have given us a small bit of information in how they sidestep the questions or just the tone of their voice. Hey look even Colonel Jessup was dying to tell the truth. What’s even more shocking to me is when the sell side analysts are asked some of these question before the call in a private conversation and still don’t follow up on it.

It’s a real shame but in the end I guess it’s my fault…I shouldn’t be surprised!

Earnings transcript

Disclosure (“none” means no position): Long-BGP, None-BKS