Analyst ratings - Handle with care

There are quality stock analysts out there. Smart people who do a lot of digging before they make a recommendation. Most analysts, however, are not so diligent.




I own PWR - a company that actually installs power lines and fiber optic cable. When AT&T decided to push more fiber to the curb, they use PWR. WHen katrina hit and power lines had to be re-installed, PWR was there.

Post Katrina, PWR continues to swing for the fences.
http://finance.yahoo.com/q/bc?s=PWR

In the latest quarterly earnings release this week, PWR reported a profit of $0.7. Expectations were for $0.03. And that is versus a $0.04 loss same quarter last year.

What is hysterical to me is that MATRIX RESEARCH downgraded them the week before release form HOLD to SELL. When a company is growing and throwing out earnings higher than expected, why would you sell? Overpriced? Maybe....but they don't seem to give any reasons. Meanwhile, PWR ran up 15% since that SELL recomendation.....