Oogling Google: Comments and Corrections

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New York, NY – Recently Integrity Research Associates wrote an article discussing the inefficiencies surrounding excessive research coverage of many large cap companies (namely Google).  As a result of that article, we received many comments from readers explaining this phenomenon and pointing out certain errors that we felt must be corrected.

First, the reason that many sell-side firms cover the same large cap companies is that clients see a direct relationship between the ability of a firm to provide research coverage on a company and the capability of that firm to provide high quality execution in that stock.  Consequently, firms that want to attract trading flow in a large company name must also provide research coverage for that stock — a development that leads to over coverage in many large cap names.

Another point that needs to be made about the Google article is that we printed a mistake about Merrill Lynch’s distribution of research via Thompson.  Merrill Lynch does distribute its research to clients via the Thompson platform, and Justin Post of Merrill Lynch does cover Google.  Consequently, forty (40) sell-side and independent analysts provide research coverage of this company.

A.G. Edwards Denise Garcia
American Technology Research Rob Sanderson
Argus Research Robert Becker
Atlantic Equities Hamilton Faber
Bank of America Brian Pitz
Bear, Stearns & Co. Robert Peck
BMO Capital Markets Leland Westerfield
Cantor Fitzgerald Derek Brown
CIBC World Markets Jason Helfstein
Citigroup Mark Mahaney
Cowen and Co. James Friedland
Credit Suisse Heath Terry
First Global Stockbroking Pratik Jain
Global Crown Capital Martin Pyykkonen
Global Equities Research Trip Chowdhry
Goldman Sachs & Co. Anthony Noto
Guzman & Company Philip Remek
J.P. Morgan Imran Khan
Jackson Securities Brian Bolan
Jefferies & Co. Youssef Squali
JMP Securities William Morrison
Lehman Brothers Douglas Anmuth
Merrill Lynch Justin Post
Morgan Stanley Mary Meeker
Needham & Company Mark May
Nollenberger Capital Todd Greenwald
Oppenheimer & Co. Sandeep Aggarwal
Pacific Crest Securities Steve Weinstein
Piper Jaffray Gene Munster
RBC Capital Markets Jordan Rohan
Soleil – Media Metrics Laura Martin
Soleil – One-on-One Research Dawn Talbot
Standard & Poor’s Equity Research Scott Kessler
Stanford Financial Group Clayton Moran
Stifel Nicolaus George Askew
Susquehanna Financial Group Marianne Wolk
ThinkEquity Partners Stewart Barry
Thomas Weisel Partners Christa Sober Quarles
UBS Benjamin Schachter
William Blair Troy Mastin

According to Google, all the traditional fundamental research companies that provide coverage of the company are listed above.  This list DOES NOT include Research firms that take quantitative or technical approaches to their analysis.

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