In this clip from The Call @ Hedgeye, Industrials analyst Jay Van Sciver and Hedgeye CEO Keith McCullough break down the dynamic nature between corporate management teams and mainstream financial media when it comes to earnings calls.
“It does create a conflict where it’s a management access thing where they are going to give you a platform to say your name and company and in return you are supposed to be nicer to them in your coverage,” explains Van Sciver. “A better quality management team lets bears ask questions and doesn’t care. You can tell a lot by how they treat the street.”
“That’s a subtly of the game that I’m sure everyone who hasn’t played the game at your level aren't aware of. . . You’ll never hear that on CNBC,” states McCullough. “It’s not only the conflict of interest of wanting to be stroked by bullish analysts, but a lot of them are advertisers on CNBC. Don’t forget the corporates.”
(This clip is a small taste of what our subscribers get each day on The Call @ Hedgeye. In a nutshell, The Call is our morning research call hosted by Hedgeye CEO Keith McCullough with our 40+ analyst research team. It helps small and large investors alike make better decisions via unique and investable stock/sector updates Click here to learn more.)