Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of metal alloy manufacturer Haynes International (NAS: HAYN) were getting a push from investors today, rising as much as 13% in intraday trading after an analyst upgrade.
So what: In new research announced today, Auriga started coverage of Haynes at a buy. This is probably the primary driver behind the move in Haynes' stock, and likely includes both Auriga clients that are buying on the details of the coverage, as well as traders simply reacting to a new buy call.
Now what: The research provided by brokerage houses can be very useful for investors. Typically the research analysts are extremely knowledgeable about the industry that they're covering and collect a lot of useful on-the-ground data. The investment recommendations, however, aren't always quite as useful. Stock research analysts in general don't have the greatest track record, and there is a definite bullish bias in most ratings.
With that in mind, it's understandable that Haynes investors are excited about positive coverage of the stock, but it's good to keep in mind that a buy recommendation from an analyst does not change the fundamental picture of the company.
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