Scimitar Equity Blog

                                 Blogging is reshaping the web impacting the dissemination of new conviction ideas. It is shaking up markets and journalism enabling millions of people to have a voice and connect with others. I blog to add commentary, update news flow and insightful opinions that are intelligent, fit – to print and SEC – compliant. Wall Street has dramatically slashed its ranks of analysts providing research but, scientific platforms and industry sectors need to be better researched for conviction ideas. As an industry veteran, I am continually mortified about the gross inaccuracies of message boards that deal with fiction, inaccurate prognostications and rants. The role of my internet blogging, I believe increases transparency.

Research Firms Tap Blogs For Marketing
Buy, Sell, Blog
- 07/22/2009
–Meredith Lepore, Wall Street Letter

Some smaller research firms, such as Scimitar Equity Research and Battle Road Research, have started blogs in an attempt to build up a following. Others that have had blogs, such as Pali Capital, are making enhancements to attract more clients. “It is a good way to get out your name when you don’t have a sales force. It is a great differentiator,” said Sandy Bragg, president of Integrity Research. According to youDevise Limited, a technology services firm that tracks the distribution and use of trade ideas, the market for ideas had grown to more than $500 million in terms of commissions paid by institutional investors in June. Colin Berthoud, founding partner, said research firms provided nearly 10% of the ideas used by hedge funds, investment banks and money managers. It’s unclear what portion of those ideas comes from blogs. Battle Road launched its research blog in June as a way to provide information that isn’t typically included in research notes, said Matthew Galinko, analyst. The Battle Road Research Blog includes the firm’s own tech index that rates the 25 most important tech stocks based on analyst picks, as well as a section that reviews Securities and Exchange Commission filings in detail and provides extra commentary on competing companies within the same industry, such as the competition between Amazon.com and Google in the digital books market. Pali Capital has added a Twitter feed and videos for live blogging and coverage from trade shows or other events where its analysts are following the companies they cover. “The investors get a whole different appreciation when they can see a video of the executive of a company they are -thinking of investing in speaking at a trade show,” said Walt Piecyk, co-head of research at Pali. Offering blogs allows research firms to cater to the investing audience that doesn’t want to devote the time to reading a lengthy report. An SEC spokesman said there are no specific guidelines for independent firms regarding the inclusion of research and analyst commentary in a blog format, noting that analysts would be required to disclose in any communication whether they are being compensated by the company they are covering. Wirehouse analysts must have all written materials approved by corporate compliance officers, and if the firm is registered with the Financial Industry Regulatory Authority, then it is subject to its electronic communication regulations, said Jacob Zamansky, attorney for Zamansky & Associates. Wirehouse firms’ analysts are held to much stricter communication regulations and are prohibited from writing blogs about areas they cover, according to spokeswomen for UBS and Morgan Stanley Smith Barney. Spokeswomen for Merrill Lynch and Wachovia did not return calls. No new provisions governing blogs are under consideration by the SEC, the spokesman said.