The cat is out of the bag. CFOs admit that they manipulate accounting rules to “misrepresent earnings”. They also say that Wall Street analysts play along. As Wall Street firms keep cutting research budgets, the quality of research will continue to decline and even fewer people will pay it any attention. We expect this downward spiral to persist until there are very few Wall Street analysts left, and as a result, we’re putting Wall Street analysts in the Danger Zone.
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