Monday Morning: When learning more means knowing less

When it comes to stock recommendations by analysts, some Wall Streeters say members of the media stink at making sure investors are aware of potential conflicts of interest.

After my requisite indignation and letter-writing campaign over such a slanderous charge, I realized that those critics may be right.

As a journalist, it’s my job to get to the bottom of those potential conflicts of interest. And not just the more obvious type that may involve analysts hyping stock that they or their company own.

Frankly, journalists should be digging deeper, much deeper, than that.

I recently called Jim Ackor, an analyst at Tucker Anthony in Portland, Maine, to find out his thoughts on whether Microsoft Corp. is a good stock to own.

But before I cut to the chase on Bill Gates, I tried my new approach to fuller disclosure.

The following is a condensed version of our conversation. All dialogue is guaranteed verbatim.

Sarah: What did you have for breakfast today?

Jim: A donut and coffee.

Sarah: I see. So you like Krispy Kreme?

Jim: Um, actually it was a Dunkin’ Donut.

Sarah: Do you eat donuts frequently?

Jim: I usually have a ham, egg and cheese sandwich.

Sarah: So you’re into cholesterol.

Jim: Big fan.

Sarah: Did you eat this breakfast in your house?

Jim: No, at a convenience store.

Sarah: So you support the retail industry.

Jim: I probably spend my fair share of money.

Sarah: Do you live in a house?

Jim: I do, actually.

Sarah: So I guess you want to see the real estate market remain strong.

Jim: Well, yes.

Sarah: Are you married?

Jim: No.

Sarah: So you’re opposed to the institution of marriage.

Jim: Actually, I’m about to get engaged.

Sarah: So I guess you’d like to see the marriage penalty tax repealed.

Jim: I’d like to see any tax repealed.

Sarah: I take it you’re a Republican.

Jim: Die-hard.

Sarah: I guess you voted for Bush.

Jim: I certainly did.

Sarah: Do you live in Florida?

Jim: No.

Sarah: Did you have any problems with hanging chad?

Jim: Um, yes, actually.

Sarah: Which was what? Did you get them confused with Al Gore?

Jim: Well, I don’t think I did … but I can’t say that for a fact.

Sarah: Did you drive a car to work today?

Jim: Yes, a Volkswagen Passat.

Sarah: So you have a stake in the German auto industry.

Jim: They make good cars.

Sarah: Do you have a child car seat in the back?

Jim: No.

Sarah: So you’re opposed to children.

Jim: Um, actually, I hope to have a few someday.

Sarah: What kind of computer do you work on?

Jim: A Dell.

Sarah: I see. So you don’t like Apple Computer.

Jim: I haven’t worked on an Apple since college. But my IT department put this computer on my desk. I didn’t have any say in the matter.

Sarah: So maybe your IT department thinks Steve Jobs doesn’t know what he’s doing.

Jim: There may be a few people who think that.

Sarah: Is there an Intel chip inside your computer?

Jim: There is.

Sarah: So you like Intel.

Jim: Well, they make a good microchip.

Sarah: OK. Now, what rating do you have on Microsoft?

Jim: I don’t follow the company.

Sarah: Oh.

As you can see, full disclosure has its limits. I think I needed to ask Jim what brand of sneakers he wears.

Sarah O’Brien is a reporter in the InvestmentNews Washington bureau.

Related Topics: Just Thinking