InterDigital Inc (IDCC)

[Danny Detail]

ziploc_1 .. I think you misunderstood my point. The published report is not the analysis the institution is looking for. They are looking for research "coverage" which is an ongoing .. 24/7 .. service much, much broader and deeper than a single published report on a company. It includes industry analysis, competitive analysis, economic overview, etc, etc. For every published report there are literally hundreds of "heads up" given to institutional clients every day that are never made public.

The commissions are not a "kickback." They are payment for ongoing services rendered and fluctuate constantly depending on how good the analyst performs relative to his peers. No institution makes a payment for a single report, but they sure do keep track of how accurate or inaccurate each analyst is and adjust their commission allocations between brokerage firms accordingly. The money management business is intensely competitive. Hundreds of millions of dollars can be moved from one money manager to another with a single phone call if the money manager doesn't perform relative to his peers. A drop of even 1% in relative performance can be extremely costly to a money manager. If it turns out that PJ is wrong then the "heads up" is worthless and if it happens enough times at PJ the institutions will take their business elsewhere.

IHUB is 24/7 "research coverage" for individuals. Over time the good "analysts" (posters) are followed and the others are ignored or disparaged. Lots of posters and lurkers are here attempting to get a timing advantage. That's what making money in the stock market is all about. The Institutional Brokerage and Money Management businesses go about it one way and individual investors go about it another way. The Internet has considerably reduced the timing advantage institutions had over individuals but IMO it will never be eliminated as long as sell-side research coverage exists.

Regards,
Danny