Jeff Saut's Permabullishness Just Cost Raymond James Hundreds Of Thousands In Lost Revenue
Yesterday, with all the grace of a permabull in a China propaganda store (aka CNBC), Rayond James' ever ebullient Jeff Saut tangoed in to tell anyone clueless enough to listen that stocks are cheap. Oh, and to buy some firm nobody had ever heard of before called Tangoe. In explaining what they do, here is what he said: "these people have the greatest and newest software on the planet right now. Who did they sell it to? To institutions like raymond james. We use their ordering and billing software and hopefully switch to their telecommunications software. It's nifty stuff." He also had some great things to say about Whiting Petroleum. So far so good. What Saut did not say is that his employer, Raymond James, for whom he works as chief strategist (which probably means to advise clients to dollar cost average all the way to $0.00) is an underwriter on not just one but both companies' secondary equity offerings in process, and that commenting on their growth prospects in a non-banana republic would be not only prohibited but punished (see quiet period). Well, the people with the "greatest and newest software on the planet" aren't waiting for the SEC to turn off the porncast. As can be seen from the following before and after cover pages of Tangoe's S1, Raymond James has just been fired as of this morning, following Saut's rank amateur commentary yesterday.
Luckily (and not surprisingly) Ray Jay was last of the last in the Tangoe bracket: as such Saut's idiotic remarks only cost the firm at most a few hundred thousands dollars (that excludes all the market making revenue the firm would have made had it placed even one share, not to mention the soft dollar coverage it would get once it same out with a Strong Buy rating on the company). However, in this same non-banana republic, we would expect Whiting to follow suit and to promptly fire Raymond James as well, for precisely the same reason. In turn, we would also expect that a termination of Jeff Saut would be imminent.
But like we said, that would be the case in a non-banana republic.
Tangoe's prospectus before Saut's attempt at breaching the quiet period (source).
And after, as of this morning (source). Note the missing party...
Whiting has not fired lead underwriter Rayond James yet.
Full CNBC interview:
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