RE: RE: TD,s Scott Cuthbertson Estimates
TD's estimates and projection for 2012 make little sense, relative to the rating downgrade, unless TD had it shorted and decided to join the shorting parade.
I don`t think it`s that sinister. How often does a big bank analyst make a prediction that differs radically from the pack? If they go out on a limb and are wrong, they look like idiots. This outweighs the boost to their reputation if they make a bold call and it turns out to be right.
In the case of Yellow, hardly anything has changed since the Trader deal was announced - and most things that did change changed for the better. The Trader deal closed. Yellow decided to use all of the money from the deal for debt reduction (not a balance between debt and stock buybacks). Yellow cut the dividend to have more money for debt reduction. These changes should have improved the price of Yellow debt.
But the market in everything Yellow tanked, so analysts had to either lower their estimates or take a strong contrarian position. They chose to lower their estimates.