If a share is classed as "overweight" by an analyst is that good? Similarly "underweight" Any links which explain these classifications clearly.. Thanks for any comments.
- posted
17 years ago
stockbroker classifications?
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- posted
17 years ago
Bitstring , from the wonderful person Neil said
Those are not classifications, they are statements of position taken. I.e. if a fund or broker says they are 'overweight' in Vodaphone it means they are holding more than the proportion you would expect based on market size weightings (i.e. the amount Vodaphone comprises of the FTSE All Share, or whatever). Similarly if they are overweight in Banks, or whatever.
As to whether it is good or bad, depends on how good the broker/fund manager is as picking winners. The could also be overweight because the share just doubled on them (but what happens next is not determined by what just happened previously).
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- posted
17 years ago
Neil,
Overweight is the recommendation by the analyst to overweight the particular stock in your portfolio. In other words, buy the stock. Furthermore, don't just look at one analyst as many, as the disclosures state, are actually advisors to the company per se.
Joe