Sometimes I wish there were an analyst Council, perhaps by stock, where everyone can come together and agree that certain stocks must go higher.
Consider this morning with Google (GOOG). Deutsche Bank raises its price target to more than $1000. Piper says self-driving cars are a $200 billion opportunity.
I think the Google Council should just declare that everyone should have a Buy on Google and they should leave it at that. Only group moves toward $1200 targets should be allowed. No ranks broken until Google disappoints. Then the silly charade can end because it sure is tiresome to read these price bumps every day. Maybe we should just mandate that all firms must own some Google the way they owned Apple (AAPL) and that Google stays in the portfolio until it starts hurting people?
Why not? The Council has spoken.
Right now there's another Council that's acting in a very confused way: the Intuitive Surgical (ISRG) Council. For months the ISRG council has struggled with some of the revelations my friend Herb Greenberg brought to light. Councils always issue edicts that go like this: "This weakness is a buying opportunity" or "the news is old news and the stock should be bought on it" or "the Council has looked these issues over and pronounced them minor."
They issue them until the company actually admits that revenues are slowing.
Now, old habits with Councils die slowly as we saw with Apple. There will be plenty of rearguarders who will talk about how this is a transitional moment for ISRG and that it's just a revenue miss and the earnings are still coming in. We will hear that it is a timing issue or that it is a one-time issue. The council always has lots of ways to explain away things.
Needless to say, it's a finished issue, they just don't know it yet.
Occasionally you get an honest-to-Betsy disagreement among analysts. We got one ahead of Microsoft (MSFT) when we caught three downgrades by people trying to make a statement that the quarter would be weak. It was very strong. The Council breaking there was brutal, made worse by my decision to pound the Council-Breakers endlessly.
And then there are the sell Councils. There was a truly straight-jacketed coalition of Tesla (TSLA) bashers, I write as I watch its inclusion into the somewhat indexed-Nasdaq 100.They were convinced that it was a fraud or overhyped or just a phenomenon that would quickly dissipate and then disappoint.
It hasn't happened and the Council's been splintered.
But these are rarities and the guilds don't take lightly to them.
Keep it in mind when you buy Google today, something that everyone has to do and accept, that at a certain point the Council will pull its Buys, way too late, of course. But in the interim, if you don't own Google for this quarter, you will have a lot of explaining to do because the Council's a mean taskmaster when it is united and it, of course, must be obeyed.
Oh, and here's the clincher.
I like Google, too.