"WAIT a moment! Does the world need more stock research?"

Aha! Glad you asked.

You see, we at Fool HQ have been asking a certain recurring question for years: Just what form does "stock research" take in our world, exactly?

Well, most of it comes from Wall Street firms who either have or hope for financing relationships with the very companies they are "analyzing." And much of that research is so short-term in nature and so prone to change its mind one month to the next that… hmm, would that be so that brokerage sales forces can use the research to induce the firm's clients to trade more frequently for the company's own profits? Wink-wink, nudge-nudge.

Let us explain a little more.

Many institutional-based stock research reports are presented under a conflict of interest. Aside from focusing on the short-term and frequently flip-flopping on a stock, an investment bank issues reports on a company because it's "good business." Good business typically means rating a company highly, whether it deserves it or not, because good business for an investment house means generating commissions by selling people a stock. At the same time, good business means keeping relations rosy with companies covered by the institutional analysts because the institution hopes to land future business contracts with the company (perhaps underwriting, or "selling," the company's secondary stock offering, for example).

If these conflicting interests seem Wise, they are! And consumers are hurt most by this whole charade. For example, consumers are pushed to buy a certain stock only because an investment bank has underwritten it and wants to maintain a business relationship with the company. Therefore, how can you take the research advice at face value?

At The Motley Fool, we want to fully and truthfully analyze a company's investment potential, and in doing so, provide you the best company research in the world. We present the facts clearly and we analyze them Foolishly -- making them understandable -- so that you can more easily make your investment decisions. Also, our research reports promise that you'll be more informed about your companies, more comfortable with your decisions, and current on your investments without having to dig through reams of news and blather. Motley Fool Research hopes to serve as an educator, a convenience service, a time saver, and an equalizer for you, the Foolish investor.

In a nutshell, Motley Fool Research stands for in-depth analysis written in plain English. In other words, the straight dope. Or better yet, the Foolish dope, from investors writing for investors, asking the critical long-term questions unique to each company, and trying to answer them.

So come on in and poke around a bit! Let us know what improvements we might make, other stocks you'd like researched, or any general questions we can help you with. This is YOUR place.

 
 
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