We examine the value of expert picks published by SmartMoney, a popular investment periodical. Most can be described as ‘hot' stocks – those that have experienced run-ups in price prior to publication. These stocks subsequently underperform the market by 0.45% per month in the six-month...

This case study documents the failure of sell-side analyst independence with respect to their coverage of Enron. More independent intermediaries including short sellers and the financial press ultimately raised important questions about the quality of Enron's management, the integrity of its...