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A Lone Wolf Analyst with a Unique Opinion Is Enlightening

There is serious value added in a unique perspective that is contrary to the crowd. Often there are no hard numbers or evidence to clearly indicate cracks in the surface. A shift to a negative stance that is all alone is a noteworthy signal. Other analysts maintain their favorable views and pooh-pooh the dissenter’s conclusion. He is castigated, dissed by executives, attacked by major institutional holders of the stock, and feels like an outcast. These repercussions are anticipated, and that’s why a dramatic rating slash is always brutal for the analyst. When an analyst is so courageous and willing to stick his neck out with a minority viewpoint, he is displaying a certain conviction. The view is enlightening, as the justification presents evidence that the preponderance of bullish advocates are wont to admit.

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