The Best And Worst Recommendations In The Technology Sector: YOKU, GTATQ, BRDR, TXTR

Least Profitable Ratings:

  1. The technology sector’s worst rating over the last 12-months came from Deutsche Bank analyst Vivian Hao. Hao initiated coverage on Chinese online television company Youku Tudou Inc on March 20 of this year, rating the stock a Sell after the company said it would spend more in order to make up for lost market share. Following a disappointing Q4 earnings report and news that the SEC was investigating certain aspects of Youku’s past accounting, Hao cited that it was “likely too late” for the company to make up lost market share in China’s extremely competitive Internet TV market. Shares of Youku Tudau were priced at $13.50 on the day of Hao’s Sell rating but have more than doubled since, last closing at $30.75 a share on May 22. Though the three-month position remains open, investors who listened to Hao’s recommendation would already have lost -127.77% of their investment on YOKU. This was the first and only time Vivian Hao rated YOKU.

  2. The second worst technology sector rating in the past 12-months came from Merrill Lynch analyst Krish Sankar. On September 10, 2014, Sankar maintained a Buy rating on GT Advanced Technology after news broke that Apple would not be using Sapphire in the iPhone 6 and iPhone 6 Plus. The analyst remained convinced that Apple would reverse the decision and re-adopt Sapphire into mobile phones, but this theory never panned out. GT Advance Technology was priced at $12.78 a share when Sankar recommended the stock. The company filed for bankruptcy in the beginning of October and trading of its stock was ultimately frozen until further notice. Investors who listened to Sankar’s recommendation would have had a -97.70% profit loss on GTATQ. The analyst has rated GTATQ four times with no success and a -96.3% average loss per recommendation.

  3. The third worst rating in the technology sector was from Cowen and Company analyst Jeff Osborne. Similar to Sankar, Osborne issued an Outperform rating on GT Advanced Technology on August 13, 2014. Osborne expected Apple to “ramp up [its] sapphire use” in comparison to competitors in the following quarters. GTATQ shares were priced at $16.59 on the day of Osborne’s recommendation and were frozen from trading barely two months later, resulting in a -97.50% profit loss on the rating. Osborne has only rated GTATQ one time.

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