The Blasphemous Analyst

Alex Guana is not exactly the name I think of when the word revolutionary is uttered. Yet in a week marred by a raging civil war in Libya, a near-nuclear disaster in Japan and the resulting free fall of the Yen... this is the guy making waves on Wall Street?

Apparently that is what happens when you throw rocks at the throne. Lesson learned to you greenhorn would be analysts. There is a price to pay for making the cash. The price can often be your integrity, scruples and morals. So while many of your are asking How much can I make? I would like to rephrase the question and re-frame the argument.

Perhaps the real question should be What is my price? What is the price I need to be paid in order to shut up and look the other way? How many dollars will help me rest easy knowing that I lied? What amount of zeros will help justify that lie as merely an omission of opinion?

For those who have made it this far, the subject is Apple and its relatively tame downgrade from "market outperform" to "market perform" by the aforementioned Alex. Not the least bit surprisingly to insiders and common sense worshipers alike, Mr. Guana got the third degree about his recommendation and even MarketBeat's Golden Guillotine for sticking his neck out.

So as this eventful week draws to a close, let's talk about personal integrity and testicular fortitude. First off, let's hear some thoughts on Apple. Personally, I have thought it to be overpriced for years but valuation and sentiment do not always coincide. I have also been hearing whispers from many an industry guy feeling the same. Mr. Guana is the first one to speak up loudly and look at the reception he's getting, no wonder so many are silent...on this and a slew of other topics.

More importantly, I'd like to know how many of you guys have (or will have) the stones to make an unpopular call. As an analyst your job is to get people to buy, not to sell. You either have or you will face pressure on a daily basis from your superiors to shine the light on established firms. Do you have what it takes to stand up and say "those assets are toxic" or will you just be another rat coming out of the wood work years later claiming that you knew the ship was sinking, but couldn't do a thing at the time?

Morals are something that is never discussed anymore. We have forgotten the true meaning and value of fiduciary responsibility. Instead of constantly bitching about regulators, populists and bonus shapes and sizes...perhaps it is time we focus on doing what is right. Even if it currently is not popular or prudent for our very own pocket. Alex Guana's analysis is unremarkable on its own, but the fact that he had the guts to speak disparagingly about a sacred cow of American industry displayed qualities which have long gone missing from the financial services industry as a whole.

Honesty and integrity.